The United States and China have long been at odds over economic issues, with tensions escalating significantly during Donald Trump’s recent presidential term. However, a recent development marks a shift in this ongoing trade conflict.
Trump and Chinese President Xi Jinping recently held talks that resulted in a truce on trade war measures affecting key sectors such as electronics, chip manufacturing, and the trade of rare earth resources. According to a report by The Financial Times, the deal was signed this week, signaling a pause in the escalating tensions between the two economic giants.
Leading up to the agreement, the situation had intensified considerably. The Trump administration had threatened to impose new tariffs targeting China’s control over rare earth minerals, which are crucial for semiconductor manufacturing. In fact, these tariffs were implemented two weeks ago as part of the U.S. government’s efforts to counter China’s dominance in this area.
Simultaneously, China took a strong stance against NVIDIA by prohibiting the sale of its AI chips within the country. This move forced NVIDIA to nearly withdraw entirely from chip manufacturing operations in China, further straining business ties between the two nations.
The newly signed deal between Trump and Xi includes a mutual agreement to halt trade war controls and retaliatory measures. Additionally, Trump and the Chinese Ministry of Commerce reportedly resolved the long-standing dispute over rare earth materials and current export restrictions.
Discussions also touched on the future of tech businesses operating between the countries. NVIDIA, for instance, has reportedly been granted permission to resume negotiations for conducting business in China. However, it appears that some restrictions on the company’s operations remain in place for the time being.
This agreement marks a cautious but significant step toward easing trade tensions between the U.S. and China, with important implications for the technology and manufacturing sectors moving forward.
https://www.shacknews.com/article/146620/us-china-trade-war-truce