The United States and China have long been at odds economically, with tensions escalating notably during Donald Trump’s most recent presidential term. However, in a recent development, 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.

The agreement, reported this week by *The Financial Times*, addresses several critical sectors including electronics, chip manufacturing, and the trade of rare earth resources. Leading up to the deal, relations were particularly strained. The Trump administration had threatened new tariffs in response to China’s control over rare earth minerals—crucial components in semiconductor manufacturing. These tariffs were implemented just two weeks ago.

Simultaneously, China took measures against American tech companies, notably restricting NVIDIA’s ability to sell AI chips within the country. This move forced NVIDIA to nearly cease its chip manufacturing operations in China.

Under the newly signed deal, Trump and Xi have agreed to pause the implementation of trade war controls and halt any retaliatory measures. Additionally, they reportedly resolved disputes concerning rare earth materials and the existing restrictions on their exports.

Further discussions also took place regarding future technology business opportunities. NVIDIA, in particular, has been given the green light to resume negotiations for conducting business in China, although some restrictions on its operations remain in effect for the time being.

This truce signals a potential thaw in U.S.-China economic relations, though the full impact and longevity of the agreement remain to be seen.
https://www.shacknews.com/article/146620/us-china-trade-war-truce