Overview

• China’s Commerce Ministry accused the U.S. of undermining the Geneva agreement by issuing AI chip export guidelines, halting sales of chip design software and revoking visas for Chinese students, and vowed forceful countermeasures.
• U.S. officials have pointed to Beijing’s decision to maintain export controls on rare earth minerals as a clear violation of the 90-day tariff suspension.
• Treasury Secretary Scott Bessent said he is confident that a direct call between President Trump and Xi Jinping will iron out compliance issues and restart stalled talks.
• Pentagon chief Pete Hegseth warned that China’s growing military pressure in the Indo-Pacific region poses an “imminent” threat and urged allies to boost defense spending.
• An official survey showed China’s manufacturing activity contracted for a second consecutive month in May, underscoring the economic strain from sustained trade tensions.