{"id":63225,"date":"2026-06-15T23:08:20","date_gmt":"2026-06-16T03:08:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-economic-weakness-and-tech-sell-off-weigh-on-markets-xi-meets-myanmar-leader\/63225\/"},"modified":"2026-06-15T23:08:20","modified_gmt":"2026-06-16T03:08:20","slug":"china-economic-weakness-and-tech-sell-off-weigh-on-markets-xi-meets-myanmar-leader","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/china-economic-weakness-and-tech-sell-off-weigh-on-markets-xi-meets-myanmar-leader\/63225\/","title":{"rendered":"China Economic Weakness and Tech Sell-off Weigh on Markets; Xi Meets Myanmar Leader"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>China\u2019s retail sales fell 0.6% in May<\/strong>, missing expectations and marking a significant contraction as domestic demand remains the primary drag on the world&#39;s second-largest economy.<\/li>\n<li><strong>Tencent (<a href=\"\/stock\/0700\">0700<\/a>) shares dropped 3%<\/strong> in Tuesday trading, leading a broader tech sell-off fueled by disappointing economic data and intensifying AI competition from <strong>Ant Group<\/strong>.<\/li>\n<li><strong>President Xi Jinping hosted Myanmar&#39;s President Min Aung Hlaing<\/strong> in Beijing to solidify the <strong>China-Myanmar Economic Corridor<\/strong> and address border stability.<\/li>\n<li><strong>The Trump administration&#39;s AI oversight framework was significantly scaled back<\/strong> just two weeks after its initial announcement, with a proposed 90-day review period for new models cut to 30 days.<\/li>\n<li><strong>South Korea and Uzbekistan deepened energy ties<\/strong>, focusing on critical minerals and infrastructure ahead of a major regional summit scheduled for September.<\/li>\n<\/ul>\n<p>China&#39;s economic recovery showed further signs of stalling in May as <strong>retail sales and fixed-asset investment<\/strong> both failed to meet market forecasts. While <strong>industrial production grew 4.5% year-on-year<\/strong>, slightly beating expectations of 4.4%, the growth was driven almost entirely by <em>strong overseas demand<\/em> rather than domestic consumption. The <strong>National Bureau of Statistics (NBS)<\/strong> emphasized that stronger employment and income growth are now &quot;critically needed&quot; to lift consumer spending and stabilize the internal market.<\/p>\n<p>The technology sector bore the brunt of the negative sentiment, with <strong>Tencent (<a href=\"\/stock\/0700\">0700<\/a>)<\/strong> seeing its stock price slide as much as 3% amid broader market weakness. Investors are increasingly concerned about <em>heightened competition in the generative AI space<\/em>, particularly following reports that <strong>Ant Group<\/strong> is testing a new &quot;super-assistant&quot; that could challenge <strong>WeChat&#39;s<\/strong> dominance. Despite the sell-off, <strong>Tencent<\/strong> continued its aggressive capital management strategy, repurchasing over <strong>1 million shares<\/strong> for approximately <strong>HK$501 million<\/strong>.<\/p>\n<p>On the diplomatic front, <strong>President Xi Jinping<\/strong> held high-level talks with Myanmar&#39;s <strong>President Min Aung Hlaing<\/strong> at the Great Hall of the People. The state visit, which runs through Friday, is focused on accelerating the <strong>China-Myanmar Economic Corridor<\/strong> and ensuring security along the shared border. This meeting marks a significant step in Myanmar&#39;s efforts to end its diplomatic isolation while securing <em>strategic infrastructure investments<\/em> from its northern neighbor.<\/p>\n<p>In the United States, the <strong>Trump administration<\/strong> faced criticism after its promised &quot;orderly oversight&quot; of artificial intelligence appeared to weaken within a fortnight of its launch. A centerpiece of the new <strong>Executive Order<\/strong>, which originally proposed a <strong>90-day voluntary review<\/strong> for advanced AI models, was reduced to a <strong>30-day window<\/strong> following intense industry pushback. Analysts suggest the move reflects a <em>deregulatory shift<\/em> intended to ensure American firms do not lose ground in the global AI race, despite lingering national security concerns.<\/p>\n<p>Meanwhile, <strong>South Korea<\/strong> and <strong>Uzbekistan<\/strong> concluded a policy consultation meeting in Tashkent aimed at securing supply chains for <strong>critical minerals<\/strong>. The two nations discussed expanding cooperation in energy, healthcare, and digital technology as part of the preparations for the inaugural <strong>Korea-Central Asia Summit<\/strong> in September. Uzbekistan remains a vital partner for Seoul due to its vast reserves of <strong>copper, molybdenum, and <a href=\"https:\/\/stockmarketwatch.com\/metal\/uranium\" data-internallinksmanager029f6b8e52c=\"13\" title=\"Uranium\">uranium<\/a><\/strong>, which are essential for South Korea&#39;s high-tech manufacturing sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways China\u2019s retail sales fell 0.6% in May, missing expectations and marking a significant contraction as domestic demand remains 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