US-China Trade Truce Extended as AI and Minerals Take Center Stage
US Treasury Secretary Scott Bessent announced that the US and China have agreed to extend their trade truce from November 10, 2026 to January 10, 2027. This move shifts attention away from immediate tariffs and towards deeper economic links between the two countries.
The talks between Donald Trump and Xi Jinping at the White House on Thursday included discussions on artificial intelligence (AI) safety and critical minerals. While AI is now a part of US-China economic diplomacy, the latest talks did not dismantle the technology rivalry underneath it.
Nvidia and other US tech companies may face continued investment in domestic chips by China, which could lead to increased spending on semiconductors, cloud infrastructure, and power equipment. Morgan Stanley expects continued investment in separate ecosystems as both countries seek greater technological independence.