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The United States and China have been at each other’s throats in economics, particularly aggressively during Donald Trump’s latest presidential term. However, Trump and Xi recently sat down to talks, and the two have signed a truce on trade war measures between the United States and China, affecting electronics, chip manufacturing, and rare earth resource trade. The deal between Xi and Trump was signed this week, as reported by The Financial Times. The actions leading up to the signing were drastic and escalatory, with Trump’s administration threatening new tariffs over China’s control of rare earth minerals used in semiconductor manufacturing. The US government followed through with those tariffs two weeks ago. Meanwhile, China disallowed NVIDIA to sell its AI chips in the country, forcing the company to almost altogether pull out of chip manufacturing in China. In the deal that was penned this week, Trump and Xi agreed to a halt on trade war controls and retaliatory measures. Trump and the Chinese Ministry of Commerce also reportedly settled the dispute on rare earth materials and the current restrictions on exports. Some talk about further tech business reportedly occurred, with NVIDIA getting the go-ahead to continue negotiations for business in China, but restrictions on its business seem to remain in place for now. With the signing of this deal, the economic heat between the US and Chinese governments may cool a bit, which may mean just a bit more security for the tech business. Stay tuned to our trade war topic as we continue to cover news and updates.
