The United States and China have long been at odds economically, with tensions escalating significantly during Donald Trump’s most recent presidential term. However, in a recent development, Trump and Chinese President Xi Jinping sat down for talks and have signed a truce regarding the ongoing trade war measures between the two countries. This truce impacts 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. The lead-up to this agreement was marked by drastic and escalating actions. The Trump administration had threatened to impose new tariffs in response to China’s control over rare earth minerals, which are crucial for semiconductor manufacturing. Two weeks ago, the U.S. government followed through on these threats by implementing the tariffs.
On the Chinese side, the government barred NVIDIA from selling its AI chips within China, compelling the company to nearly cease its chip manufacturing operations in the country altogether.
Under the newly penned deal, Trump and Xi have agreed to halt trade war controls and retaliatory measures. The two leaders, along with the Chinese Ministry of Commerce, reportedly resolved disputes concerning rare earth materials and existing export restrictions.
There have also been discussions about future technological business collaborations. NVIDIA, for instance, has reportedly been given the green light to resume negotiations for its operations in China. However, some restrictions on its business activities appear to remain in effect for the time being.
This agreement marks a significant step toward easing economic tensions between the United States and China, potentially paving the way for more stable trade relations in the technology sector moving forward.
https://www.shacknews.com/article/146620/us-china-trade-war-truce
