China Advises AI Experts to Avoid US Travel over Security Risks : WSJ

Officials fear that Chinese AI experts traveling abroad could expose sensitive information about the country’s advancements in the field, the report said.

Authorities are also concerned that executives could face detention and be used as leverage in US-China negotiations, the Journal noted, drawing comparisons to the arrest of a Huawei executive in Canada at Washington’s request during the first administration of US President Donald Trump.

The White House and China’s State Council Information Office did not immediately respond to Reuters' requests for comment.

Executives from China’s top AI firms and other strategically important industries, such as robotics, have been discouraged from traveling to the US and its allies unless absolutely necessary, the report said.

Those who do travel are required to report their plans before departure and provide details of their activities and meetings upon return, the Journal added.

DeepSeek AI founder Liang Wenfeng declined an invitation to an AI summit in Paris in February, according to the report. Another AI startup leader canceled a planned US visit last year following Beijing’s directive, it added.

The US and China are engaged in an intense AI competition, with DeepSeek recently unveiling AI models that it claims rival or outperform US leaders such as OpenAI and Google at a significantly lower cost.

In February, Chinese President Xi Jinping met with top technology executives, urging them to "show their talent" and have confidence in China’s economic model and market.

China’s Factory Activity Grows at Fastest Pace in Three Months

China’s manufacturing sector expanded at the fastest pace in three months in February, supported by increased new orders and higher purchasing volumes, an official factory survey showed on Saturday.

The improvement is expected to reassure policymakers that stimulus measures introduced late last year are bolstering recovery in the world’s second-largest economy, ahead of the country’s annual parliamentary meeting on March 5.

The official purchasing managers’ index (PMI) climbed to 50.2 in February from 49.1 in January, marking the highest reading since November and surpassing analysts’ expectations of 49.9 in a Reuters poll.

The non-manufacturing PMI, covering services and construction, edged up to 50.4 from 50.2 in January.

Chinese policymakers are set to announce economic targets and policy support at next week's gathering in Beijing, with investors looking for signs of additional aid for the struggling property sector and heavily indebted developers.

China’s $18 trillion economy met the government’s 2024 growth target of "around 5%" but showed uneven performance, with exports and industrial output outpacing retail sales while unemployment remained high.

Beijing is expected to maintain the same growth target this year, but analysts are uncertain about the speed at which policymakers can boost weak domestic demand, especially amid escalating trade tensions with the US

"Since the PMI data is measured on a month-on-month basis, it may be affected by seasonal factors related to the Spring Festival in January and February," said Zhang Zhiwei, chief economist at Pinpoint Asset Management.

"The manufacturing data is relatively stable," he added, cautioning that a clearer picture would emerge after the release of further economic indicators. China will publish trade data for January-February on March 7.

Despite the improvement, new export orders, factory gate prices, and employment remained in negative territory last month, though the rate of contraction slowed, National Bureau of Statistics data showed. Employment reached a 22-month high.

China Vows to Counter External Economic Pressures

To sustain growth and counter mounting external challenges, Chinese policymakers have pledged higher fiscal spending, increased debt issuance, and further monetary easing.

Senior Communist Party officials met on Friday, vowing to take measures to prevent and manage external shocks to China’s economy, state media reported.

The Politburo meeting took place a day after Trump announced plans to impose an additional 10% tariff on Chinese goods on March 4, following a 10% duty imposed on February 4 over the fentanyl opioid crisis. He said the move was aimed at pressuring Beijing to curb the trafficking of the deadly drug.

The combined tariffs would reach 20%, still lower than the 60% rate Trump has previously threatened on the campaign trail.

China’s Commerce Ministry said on Friday it hoped to resume negotiations with Washington as soon as possible, warning that failure to do so could prompt retaliation.

A Reuters poll estimated that the private sector Caixin PMI rose to 50.3 in February from 50.1 in January. The data will be released on March 3.