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US and China are already feuding again after unexpected trade truce

  • The United States and China agreed to a temporary tariff truce in May 2025 with a 90-day window to negotiate a broader trade deal.
  • The truce follows U.S. Warnings against using Huawei's advanced AI Ascend chips, which Beijing says undermines prior trade consensus and escalates tensions.
  • Huawei's AI chips challenge Nvidia's dominance, while U.S. Export controls limit China's chip access and China responds with export restrictions on critical minerals.
  • Nvidia CEO Jensen Huang called the export restrictions costly, estimating the China market at $50 billion and praising the rollback of Biden-era curbs as a policy correction.
  • Despite the truce easing tariffs, sharp disputes over AI technologies and supply chains persist, suggesting tough negotiations ahead amid rivalry over future digital leadership.
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CNBC broke the news in United States on Wednesday, May 21, 2025.
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