An updated edition of the March 31, 2026, article.

U.S.-China trade relations advanced in May 2026 as President Trump's May 14-15 Beijing summit with President Xi Jinping—the first visit by a sitting U.S. president in nearly a decade—produced a White House framework establishing the U.S.-China Board of Trade and Board of Investment. China committed to purchasing at least $17 billion in U.S. agricultural products annually through 2028 and 200 Boeing aircraft, while Washington guaranteed jet engine and component supply. Both sides agreed to reduce non-tariff barriers and discussed AI guardrails. The Board of Trade may facilitate tariff repeal on roughly $30 billion of goods, sustaining bilateral momentum which is likely to present compelling portfolio opportunities for companies, including Kingsoft Cloud (KC Quick QuoteKC - Free Report) , PDD Holdings (PDD Quick QuotePDD - Free Report) , Tencent Holdings (TCEHY Quick QuoteTCEHY - Free Report) and Taiwan Semiconductor (TSM Quick QuoteTSM - Free Report) .

U.S.-China Trade Progress Across Strategic Technology Sectors

In semiconductors, the bipartisan MATCH Act sought tighter U.S. controls on lithography and etching tool exports, yet Reuters reported in May that Washington had cleared Nvidia H200 AI chip sales to several major Chinese technology firms under case-by-case BIS review, though officials confirmed chip controls were not formally negotiated at the summit; SMIC continued mature-node expansion.

In electric vehicles, BYD delivered 321,123 NEVs in April, marking an eighth consecutive year-over-year monthly decline of roughly 16%, while exports hit a record 134,542 units and first-quarter net profit fell about 55%. The April 24-May 3 Beijing Auto Show drew 1.28 million visitors, with new-energy models exceeding 85% of displays and Tesla notably absent; Leapmotor posted a record 71,387 April deliveries as the domestic price war increasingly shifted toward an artificial-intelligence and autonomy contest.

In artificial intelligence, DeepSeek released a new reasoning model in April that outperformed leading open-source systems while trailing top closed-source models, as China's AI enterprises surpassed 6,000 and bilateral AI safety guardrails entered summit discussions; Chinese open-source models, prized for cost-performance, retained roughly 15% global share. In humanoid robots, Honor's "Lightning" won the April 19 Beijing E-Town half-marathon, surpassing the human world record, while TrendForce projected 94% output growth in 2026 with Unitree and AgiBot capturing nearly 80% domestic share, Unitree targeting 20,000 shipments; the 15th Five-Year Plan placed robotics at the heart of the modern industrial system, backed by a $138 billion state venture fund.

In aerospace, the summit secured China's 200-aircraft Boeing commitment, potentially expanding to 750, and U.S. jet engine-supply guarantees, aiding COMAC's C919 ramp; 32 units were delivered through 2025 as the indigenous CJ-1000A engine advanced, though a senior academician in May urged accelerated supply-chain localization to reduce Western dependency. In computerized machines, CNC machine tool expansion continued amid persistent precision-equipment import dependence. China's defense budget reached approximately $277 billion, up 7%, funding hypersonic and drone programs.

In medical devices, the domestic market approached $172.9 billion across more than 33,000 enterprises, with rising domestic substitution. On high-tech maritime and rail equipment, the CR450, the world's fastest high-speed train, advanced toward 400 km/h commercial operations targeted for 2026. Investment in new synthetic materials, particularly aerospace composites and EV battery applications, retained state-backed momentum. In advanced electrical equipment, installed energy storage surpassed 100 gigawatts, roughly 54% of global installations, reinforcing China's grid-technology leadership amid stabilizing bilateral conditions.

Chinese technology companies present compelling opportunities for investors navigating geopolitical volatility through late 2026's trade framework. Our China Tech Screen is an invaluable source for identifying stocks with massive growth prospects in the space.

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4 Chinese Tech Stocks in Focus Right Now

Kingsoft Cloud enters 2026 with strengthening fundamentals. In fiscal 2025, total revenues reached RMB9,558.6 million, up 22.8% year over year, with public cloud revenues growing 32.5% to RMB6,633.5 million. AI gross billing surged 95% year over year to RMB926 million in fourth-quarter 2025, reflecting deepening enterprise AI demand. Adjusted EBITDA rose 118.3% year over year in fourth-quarter 2025, with margin expanding to 28.4%. The company achieved non-GAAP operating profitability for two consecutive quarters. In April 2026, Kingsoft Cloud revised its Xiaomi cooperation framework, raising IDC caps, extending hardware procurement through December 2027 and adding API-related services through 2027, reinforcing revenue visibility. With first-quarter 2026 results due May 27 and cash of RMB6,018 million, strong AI momentum and ecosystem expansion support the near-term investment case for this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PDD Holdings enters the second half of 2026 with a clear strategic pivot: deep, sustained investment in supply chain infrastructure across its Pinduoduo and Temu platforms. This Zacks Rank #3 (Hold) company's fourth-quarter 2025 total revenues came in at RMB 123.9 billion, up 12% year over year, with transaction services revenues growing 19%, reflecting accelerating merchant activity. Research and development expenses rose 30% in fiscal 2025, signaling intensified platform innovation. Cash, cash equivalents and short-term investments reached RMB 422.3 billion as of Dec. 31, 2025, providing substantial capital for planned ecosystem-wide investments. Management has committed to redirecting resources toward supply chain development as a multi-year priority, positioning the company to deepen merchant relationships, improve fulfillment efficiencies and expand its buyer base across geographies.

Tencent's first-quarter 2026 results signal broad-based fundamental momentum. Total revenues rose 9% year over year to RMB 196.5 billion, while IFRS net profit surged 19% to RMB 59.4 billion. Free cash flow grew 20% to RMB 56.7 billion, with net cash expanding 63% to RMB 146.9 billion. Marketing Services revenues accelerated to 20% growth, powered by AI-enhanced ad targeting within Weixin. Business Services grew 20%, led by cloud and AI demand. Last month, Tencent launched and open-sourced the Hy3 large language model, which ranked as the most-used model on OpenRouter since April 28. WorkBuddy leads China's productivity AI agent market by daily active users. Combined Weixin and WeChat MAUs reached 1.432 billion. Share buybacks and expanding margins reinforce the near-term case for this Zacks Rank #3 company.

TSM enters the near-term backed by strong fundamentals. In first-quarter 2026, the company posted revenues of $35.90 billion, up 40.6% year over year, with a gross margin of 66.2% and a net profit margin of 50.5%. Advanced nodes — 3nm and 5nm combined — contributed 61% of wafer revenues, reflecting sustained demand for leading-edge manufacturing. For second-quarter 2026, TSMC guides revenues between $39 billion and $40.2 billion. At its April 2026 Technology Symposium, this Zacks Rank #3 company unveiled the A13 process node, extending its technology roadmap. A May 2026 MOU with Sony Semiconductor Solutions for a next-generation image sensor joint venture broadens market reach. The divestment of its 8.1% Vanguard stake signals a sharper focus on 2nm, A16 and advanced packaging.