US, China Soften Trade Stance Amid Nvidia Chip Export Resumption

US President Donald Trump has adopted a softer trade stance towards China, aiming to foster a more cooperative relationship and pave the way for a summit with Chinese President Xi Jinping. This shift includes a willingness to suspend tariff escalations and prioritize quick trade wins, such as securing purchase deals, rather than aggressively addressing trade imbalances through tariffs. As part of this thaw, the US has approved licenses for Nvidia to resume sales of its H20 AI chips to China, marking a significant policy reversal in the ongoing three-year chip trade conflict. Chinese officials, including Commerce Minister Wang Wentao, have welcomed these developments and expressed hope for a return to stable, constructive economic ties with the US. The forthcoming trade deal is expected to resemble the phase one agreement from Trump's first term, focusing on increased Chinese purchases of American goods, although past commitments were hindered by the COVID-19 pandemic. However, Trump's softened approach has sparked internal debate, with some advisers advocating for a tougher stance on Beijing.