Ongoing U.S.–China Trade Tensions Despite Temporary Truce

Despite a temporary agreement between the United States and China to ease trade tensions, signs suggest that the strategic rivalry between the two powers remains unresolved.

In a recent television interview, Donald Trump announced that Blackwell series AI chips will be used exclusively within the United States and will not be authorized for sale to China. This statement indicates that even after last week’s provisional trade truce, Washington’s policy of restricting the export of advanced technologies remains firmly in place.

Meanwhile, China’s ambassador to the United States has called on Washington to respect Beijing’s “red lines.” His remarks came after the recent meeting between Trump and Xi Jinping in South Korea, where the two leaders agreed on a one-year ceasefire and the resumption of talks covering trade, technology, and security issues.

However, the Chinese envoy warned that if Beijing’s core interests — including Taiwan and human rights concerns — are challenged, the tensions could easily reignite.

In financial markets, investors remain skeptical about the durability of the temporary deal, as the fundamental disagreements between the world’s two largest economies remain unresolved.