The United States and China have long been economic rivals, with tensions reaching a peak during Donald Trump’s recent presidential term. However, in a surprising development, Trump and Chinese President Xi Jinping recently sat down for talks that resulted in a truce on trade war measures between the two countries.
This new agreement, signed this week as reported by The Financial Times, specifically addresses critical sectors such as electronics, chip manufacturing, and the trade of rare earth resources. The lead-up to this deal was marked by significant escalations. The Trump administration had threatened new tariffs targeting China’s control over rare earth minerals, which are essential for semiconductor manufacturing. True to these threats, the U.S. government implemented the tariffs two weeks ago.
On the other side, China took measures against U.S. companies as well. Notably, it barred NVIDIA from selling its AI chips in the country, effectively forcing the company to scale back its chip manufacturing operations within China.
Under the newly penned agreement, Trump and Xi agreed to halt trade war controls and retaliatory measures. Additionally, Trump, along with the Chinese Ministry of Commerce, reportedly resolved the dispute surrounding rare earth materials and current export restrictions.
Further discussions also touched on technology business dealings. NVIDIA has reportedly been given the green light to resume negotiations for its business operations in China, although certain restrictions appear to remain in effect for the time being.
This truce marks a significant step toward easing trade tensions between the world’s two largest economies, with potential positive implications for global markets and the tech industry.
https://www.shacknews.com/article/146620/us-china-trade-war-truce
