Trump’s China visit comes as Asia’s capex super cycle shifts economic power

When President Donald Trump visited China, a group of 17 business leaders aimed to land deals in Asia's largest market. Their investments are expected to boost the economy in China and across the continent, which is already seeing a shift in economic patterns. East Asian companies are ramping up spending on advanced tech and renewable energy like never before, driven by US trade tensions, Middle Eastern conflicts, and fierce global AI competition. Morgan Stanley predicts a “super cycle” in Asian spending on infrastructure, recalling the growth phase from 2003 to 2007. In a note from April 27, they pointed out increased investments in defense, AI, and energy that are creating jobs and raising wages. Xu Tianchen from the Economist Intelligence Unit noted that China's robust supply chain makes it well-equipped for this new economic phase. Meanwhile, the US-Iran conflict is causing energy supply issues, adding to global uncertainty and straining US-China relations.