China has set its GDP growth target for 2026 at 4.5% to 5%, marking the lowest target on record since the early 1990s, according to the government work report seen by CNBC [1]. This move comes amid persistent deflationary pressures and ongoing trade tensions with the U.S. [1]. Defense spending in China will rise by 7%, which is the slowest increase since 2021, though analysts believe the official figures may be understated [1].
Global tariffs are set to increase, with U.S. Treasury Secretary Scott Bessent announcing that 15% tariffs will start this week, up from the current 10%. Bessent also predicted that U.S. tariff rates would return to pre-Supreme Court levels by August, following the recent court decision that struck down steeper duties imposed by President Trump last year [1].
The tech sector is facing supply chain concerns, as the Information Technology Industry Council expressed 'concern' to U.S. Defense Secretary Pete Hegseth after a company was designated as a supply chain risk. Although the letter did not name Anthropic, the artificial intelligence company was labeled a supply chain risk on Friday after failing to reach a deal with the Defense Department. Participating firms included Nvidia, Google, Anthropic, Microsoft, Apple, and Amazon [1].
Broadcom reported earnings and revenue that beat expectations and issued a strong forecast for the current period, driven by the artificial intelligence boom. The stock rose as much as 5% in extended trading Wednesday. CEO Hock Tan stated, "We have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027," and confirmed that Broadcom has secured the supply chain required to achieve this [1]. Nvidia CEO Jensen Huang commented that the company's recent $30 billion investment in OpenAI "might be the last time" it invests in the startup before a potential public offering toward the end of the year. Huang also noted that the previously touted $100 billion investment is "probably not in the cards" [1].
CONCLUSION
China's record-low GDP growth target and rising global tariffs signal heightened economic uncertainty and trade tensions. Despite these challenges, the tech sector—particularly AI chipmakers like Broadcom and Nvidia—continues to show strong performance and optimism. Market sentiment is cautious but resilient, with high impact expected across global equities and supply chains.