Domestic News - In May, the promotion rate for new energy vehicles in China decreased to 11%, which is a 1.6 percentage point increase compared to the previous month [1] International News - The U.S. has been reported to suspend the sale of nuclear power plant equipment to China [3] - U.S.-India trade negotiations have made progress, with the U.S. delegation extending their stay in India for discussions until Tuesday [3]

Group 1 - The recent unilateral tariff measures introduced by the U.S. have severely disrupted global trade activities and harmed the growth prospects of the world economy [1] - The U.S. claims that the trade imbalance with China is the main reason for imposing tariffs, but the real issue lies in the U.S. framing economic problems in terms of security, which could hinder cooperation [1] - The trade deficit of the U.S. is a result of its own policies, including export controls on high-tech products, leading to long-term restrictions on exports [1] Group 2 - China's foreign trade dependence has decreased from over 60% at the beginning of the century to slightly above 30% in 2024, indicating a shift towards domestic consumption as the main driver of economic growth [2] - The notion of an "imbalance" in U.S.-China trade is a false narrative; both countries have extensive common interests and cooperation opportunities, with mutual benefits being the essence of their economic relationship [2] - Historical evidence shows that politicizing economic issues and forcing companies to choose sides is against market rules and does not align with the fundamental interests of both nations [2]

Core Viewpoint - The article emphasizes the need for China to transform its strong supply capabilities in research and manufacturing into marketable wealth, income, and consumption [1]. Group 1: Trade and Economic Policies - The recent high-level economic talks between China and the U.S. in Geneva resulted in substantial progress on tariff policies, reflecting a multi-dimensional competition and rebalancing between the two nations [2]. - The trade imbalances between China and the U.S. are a result of their differing development models, with the U.S. adopting a strong dollar and aggressive macroeconomic stimulus, leading to long-term trade deficits, while China maintains a weak yuan and cautious economic policies, resulting in trade surpluses [2][3]. Group 2: Corporate Strategy and Globalization - Chinese companies need to explore becoming true multinational corporations by leveraging global markets, with local and central government policies supporting this initiative [4]. - The current "A+H" model of many domestic listed companies has not fully utilized Hong Kong's advantages, suggesting a potential shift towards a "dual headquarters" model for better global supply chain management [4]. Group 3: Macroeconomic Policy and Consumer Spending - The direction of macroeconomic policies to support and encourage consumption is correct, but there is a need to focus on increasing residents' income and wealth to drive fundamental changes in expectations [5].