Trump Visits China with U.S. Business Delegation; Luxshare Plans to Take Control of Jingxi Heavy Industry; Multiple Automakers Expand European Capacity

From May 13 to 15, former U.S. President Donald Trump led a delegation of representatives from 18 American companies on a visit to China, spanning sectors including technology, finance, aviation, and agriculture. Participating companies included Tesla, Apple, Qualcomm, Micron, Citigroup, Goldman Sachs, Blackstone, Boeing, and Cargill. NVIDIA CEO Jensen Huang joined the delegation at the last minute. Meanwhile, sources familiar with the matter revealed that the U.S. has approved approximately 10 Chinese companies to purchase NVIDIA’s H200 AI chips, though deliveries have not yet been completed; Lenovo confirmed it is among the authorized sellers of these chips. On May 10, Jingxi Heavy Industry announced that Luxshare Precision had signed a conditional agreement with its controlling shareholder, Jingxi ZhiXing Group, on March 30 to acquire 59.5% of Jingxi Heavy Industry’s shares indirectly held by the group. Upon completion of the transaction, Luxshare Precision would become the controlling shareholder of Jingxi Heavy Industry. Luxshare has applied to China’s Securities Regulatory Commission (CSRC) for a "whitewash waiver" to avoid triggering a mandatory general offer obligation, which regulators have preliminarily approved. Trading in Jingxi Heavy Industry’s shares resumed on May 11. On May 15, Stellantis Group and Dongfeng Motor announced the signing of a strategic cooperation agreement to produce multiple new energy vehicles under the Peugeot and Jeep brands starting in 2027 at Shenlong Automobile’s Wuhan plant, targeting global markets. Initially, two Peugeot NEV models will be introduced, followed by mass production of two Jeep NEV off-road models. The project entails total investment exceeding RMB 8 billion (approximately EUR 1 billion), with Stellantis contributing EUR 130 million and receiving policy support from Hubei provincial authorities. Li Ke, Executive Vice President of BYD, stated the company is in talks with Stellantis and other European automakers regarding the acquisition of idle or underutilized factories in Europe, with potential locations including Italy. In the long term, BYD is also considering countries like France where electricity prices are relatively low. BYD prefers operating European plants independently rather than through joint ventures. XPeng Motors has been reported to be negotiating with automakers including Volkswagen over acquiring European manufacturing facilities. Volkswagen currently holds about a 5% stake in XPeng and maintains three joint venture partners in China. The CEO of the Volkswagen brand stated no automaker has expressed interest in taking over its planned-to-close German plants, but XPeng’s head for Northeast Europe said the company is exploring possibilities with Volkswagen regarding establishing production facilities in Europe and is also considering building new plants to meet product demand. Effective May 11, Magna appointed Wu Zhen, formerly President of Magna China, as International Vice President, focusing on supporting Chinese automakers’ globalization efforts. Li Yaxu succeeded Wu as President of Magna China while continuing to serve as Vice President of the Body and Chassis Systems business unit. Li joined Magna in 2005 and has held various management roles, bringing extensive experience in local operations. On May 13, Japanese motor manufacturer Nidec admitted to multiple instances of product quality falsification, involving unauthorized changes to materials, processes, and design specifications. Over 1,000 problematic cases were identified across its home appliance motor and automotive components businesses. The company stated it has not yet found any issues affecting product functionality or safety, has initiated customer communications and comprehensive quality inspections, and will establish an external expert committee to investigate the matter. Its share price plunged as much as 18% intraday following the disclosure.