The United States and China have long been at odds economically, with tensions escalating significantly during Donald Trump’s most recent presidential term. However, recent developments indicate a potential thaw in relations, as Trump and Chinese President Xi Jinping sat down for talks and signed a truce addressing key aspects of the ongoing trade war.
This week, as reported by The Financial Times, the two leaders reached an agreement to ease trade war measures affecting sectors such as electronics, chip manufacturing, and the trade of rare earth resources. The path to this agreement was marked by intense escalation, including threats from the Trump administration to impose new tariffs in response to China’s control over rare earth minerals—critical components in semiconductor manufacturing. The U.S. followed through by implementing these tariffs two weeks ago.
Simultaneously, China took its own retaliatory steps by prohibiting NVIDIA from selling its AI chips within the country. This move forced NVIDIA to nearly halt its chip manufacturing operations in China altogether.
The recently signed deal between Trump and Xi calls for a cessation of trade war restrictions and retaliatory actions. Additionally, the U.S. and China have resolved disputes relating to rare earth materials and existing export controls.
There were also discussions about the future of technology business between the two countries. Notably, NVIDIA has been given the go-ahead to resume negotiations for business operations in China. However, it appears that some restrictions on the company’s activities remain in place for the time being.
This development marks a significant step toward reducing economic tensions between the world’s two largest economies and could pave the way for more stable trade relations moving forward.
https://www.shacknews.com/article/146620/us-china-trade-war-truce