The United States and China have long been at odds economically, with tensions escalating notably during Donald Trump’s most recent presidential term. Recently, however, Trump and Chinese President Xi Jinping sat down for talks and signed a truce aimed at easing the ongoing trade war between the two nations. This agreement specifically impacts sectors such as electronics, chip manufacturing, and rare earth resource trade.
As reported by The Financial Times, the deal was finalized just this week following a series of drastic and escalating actions. The Trump administration had threatened new tariffs over China’s control of rare earth minerals—key components in semiconductor manufacturing. These tariffs were implemented two weeks ago as tensions heightened.
Meanwhile, China barred NVIDIA from selling its AI chips within the country, effectively forcing the company to almost entirely withdraw from chip manufacturing activities in China.
Under the newly signed deal, Trump and Xi agreed to halt further trade war measures and retaliatory actions. Additionally, the U.S. administration and the Chinese Ministry of Commerce reportedly resolved their dispute concerning rare earth materials and current export restrictions.
Discussions about future technology business dealings also took place. NVIDIA, in particular, received the go-ahead to continue negotiations for business operations in China; however, existing restrictions on its activities appear to remain in place for the time being.
This truce marks a significant step toward stabilizing the economic relationship between the two global powers, though many details are yet to be fully clarified as both sides navigate this complex landscape.
https://www.shacknews.com/article/146620/us-china-trade-war-truce
