Trump-Xi Summit, Space Data Center Debate, Inflation Up | Diet TBPN

The gist

1. The U.S. is restricting AI model access for security while simultaneously selling China the chips needed to build competing AI systems.
2. China is estimated to be 6 to 12 months behind the U.S. in frontier AI, with its biggest obstacle being consolidating compute into one training operation.
3. Taiwan is the sharpest pressure point in negotiations, with Xi expected to push Trump to oppose independence and block U.S. arms sales.
4. Stagflation risk is rising, with real GDP growth at 0.1% and five-year inflation expectations at 2.7%, driven partly by Middle East energy disruptions.