US-China tech tensions impact odds of Xi Jinping’s US visit by 2026

China’s technological advancements are reportedly intensifying the tech race with the United States, potentially increasing friction between the two nations. This development comes as both countries continue to vie for dominance in key areas such as AI, semiconductors, and quantum computing. The ongoing rivalry has led to heightened economic and strategic tensions rather than military conflict. The United States has responded by tightening controls on advanced chip access and restricting outbound investments into sensitive Chinese tech sectors, while China remains focused on achieving technological self-sufficiency. These developments appear to be affecting the likelihood of a visit by Chinese President Xi Jinping to the United States before the end of 2026. Market data suggests a slight decrease in the probability of such a visit, with the current pricing at 91.5% for a YES outcome, down from 93% a week ago. The increased friction between the two superpowers may be influencing market sentiment, as participants weigh the chances of a diplomatic engagement amidst escalating tensions. Key Takeaways Market activity suggests a decrease in the probability of Xi Jinping visiting the US b...