China Preps for Potential Trump-Xi Summit

A prior trade war saw tariffs reach as high as 145% on certain Chinese goods, leading to a significant recalibration of global supply chains. This has directly impacted Los Angeles, where the San Pedro Bay Port Complex handles 31% of the United States' containerized international trade, a significant portion of which is with China. The volatility has forced LA-based importers of everything from produce to apparel to either absorb rising costs or pass them on to consumers, threatening the viability of many small businesses. The semiconductor industry remains a primary flashpoint, with the U.S. attempting to slow China's advancement in AI and military technology. This has led to a complex dance of export controls, with the administration at times restricting and at other times conditionally approving sales of advanced AI chips from companies like Nvidia. These decisions create uncertainty for tech companies and have prompted China to accelerate its own domestic semiconductor development. In response to the trade conflict, there's a growing trend of "friend-shoring," with companies moving manufacturing to allied countries like Mexico and Vietnam to de-risk their supply chains. This shift presents a significant opportunity for startups, particularly in the supply chain and logistics sectors. Venture capital firms in Los Angeles, such as Supply Change Capital and Amplify.LA, are investing in startups that offer solutions for supply chain visibility, automation, and resilience. For founders, navigating this environment requires a proactive approach to geopolitical risk. Investors now expect to see scenario planning that accounts for potential trade disruptions. Startups that can demonstrate a resilient and diversified supply chain, or those that provide the tools for others to do so, are attracting attention. Pitching a deep understanding of these geopolitical dynamics has become a critical component of fundraising. Key names to watch in the ongoing dialogue include not just the presidents themselves, but also figures who have previously shaped trade policy, such as former U.S. Trade Representative Robert Lighthizer. On the investment side, partners at LA firms like Noramay Cadena of Supply Change Capital and David Waxman of TenOneTen Ventures are actively funding companies in the supply chain tech space, indicating where smart money is flowing amidst the uncertainty. Looking ahead, a potential visit by Trump to China in April 2026 could set the tone for the next phase of the relationship. However, the underlying tensions in technology and trade are expected to persist. For early-stage ventures, the focus will remain on building adaptable business models that can weather geopolitical shifts and capitalize on the new economic landscape being forged by this great power competition.