The United States and China have long been engaged in economic tensions, which intensified significantly during Donald Trump’s most recent presidential term. However, there has been a recent shift toward diplomacy, with Trump and Chinese President Xi Jinping sitting down for talks and signing a truce to ease trade war measures between the two countries.
This new agreement, signed this week and reported by *The Financial Times*, impacts key sectors such as electronics, chip manufacturing, and the trade of rare earth resources. The lead-up to the deal was marked by heightened tensions, including the Trump administration’s threat to impose new tariffs on China over its control of rare earth minerals—essential components in semiconductor manufacturing. True to its word, the U.S. government implemented these tariffs two weeks ago.
On the other side, China responded by restricting NVIDIA from selling its AI chips within the country, effectively forcing the tech giant to largely withdraw from chip manufacturing operations in China.
In the newly penned deal, Trump and Xi agreed to halt trade war controls and retaliatory measures. Additionally, the U.S. administration and the Chinese Ministry of Commerce reportedly resolved disputes related to rare earth materials and existing export restrictions.
There were also discussions about the future of tech business between the two nations. NVIDIA, in particular, received permission to resume negotiations for business activities in China. Nevertheless, some restrictions on its operations remain in effect for the time being.
This truce marks a potentially significant step toward de-escalating the economic conflict and fostering improved trade relations between the United States and China.
https://www.shacknews.com/article/146620/us-china-trade-war-truce