Government support
The United States and China are working to reach an agreement to reduce trade tensions after US President Donald Trump imposed heavy tariffs on dozens of countries. On Monday evening, the White House signed a mutual tariff truce with China for another 90 days, postponing the introduction of higher tariffs between the two largest economic powers, according to the TASR agency's website. The negotiations on extending the truce after August 12 were agreed upon last month. Previously, their May agreement temporarily reduced tariffs by 115% from a prohibitive 145% in April, with US tariffs on Chinese products falling to 30% and Beijing's tariffs on US goods falling to 10%, while according to the Peterson Institute for International Economics, these tariffs were more than 32.6%, according to the news portal of the American business television station CNBC. [1], [2]
The Office of the President of the United States added that Beijing continues to take significant steps to address Washington's complaints. Experts generally expect a summit between the US head of state and Chinese President Xi Jinping to take place in Beijing in the coming months. However, political risk expert Ian Bremmer noted that both sides are "structurally moving toward separation as a result of the new global trade and geopolitical environment."
The official extension of tariffs was still hanging in the balance the day before the extension. US President Donald Trump had given little indication as to whether he would seek an extension, raising concerns that trade tensions between Beijing and Washington could escalate again. The trade agreement may include a commitment by China to increase purchases of US products, particularly energy, agricultural products, and potentially semiconductors and chip manufacturing equipment.
Control of exports of chip manufacturing equipment
In recent weeks, tensions between the US and China have escalated over semiconductor export controls, despite plans by US manufacturer and developer of graphics processors and motherboard chipsets Nvidia to resume sales of its H20 chip to China, which will trigger export controls on this type of component introduced by US President Donald Trump in April. The director of political consulting firm Teneo said that the resumption of sales of this type of chip signals is a slight correction rather than a strategic change. He added that there will be no significant relaxation of export controls. However, Trump may consider concessions on export controls that other members of his administration consider excessive in order to reach an agreement with Beijing, Wildau added. The resumption of H20 sales comes at a time when national security hawks in the Trump administration are warning that US chips and other technologies could strengthen China's artificial intelligence sector and its military. Others argue that further restrictions could backfire and prompt Beijing to accelerate efforts to develop its own chips and reduce its dependence on US suppliers. Chinese officials are urging the United States to ease export controls on high-performance memory chips, whose shipments to China were banned last year by former US President Joe Biden, CNBC reported, citing the Financial Times. It added that semiconductor giants Nvidia and US-based Advanced Micro Devices, also known as AMD, have agreed to give the US government 15% of their revenue from chip sales to China in order to secure export licenses.[3]
Company outlook
Analysts from Morgan Stanley, Loop Capital, and Citi predict higher ratings in the future, driven by Nvidia's unchallenged dominance in the artificial intelligence revolution, according to the Investors portal. Mizuho has also raised its target price for Nvidia to 185. Mizuho Securities semiconductor analyst Vijay Rakesh expects 5.3 million shipments of artificial intelligence accelerators this year and six million shipments in 2026. However, he also said that Nvidia's new-generation Rubin server, which it claims is 3.3 times faster than Blackwell Ultra, could bring even higher sales, especially if Nvidia switches to air cooling technology. The analyst added that such a change would help it capture a larger share of the data center market. Rubin is currently designed for liquid cooling. Rakesh has an outperform rating on the company's stok. [1] [4]
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied in any forward-looking statements.
[1] https://www.teraz.sk/zahranicie/trump-predlzil-colne-primerie/898984-clanok.html?utm_source=teraz&utm_medium=organic&utm_campaign=click&utm_content=.%253BsZahrani%25C4%258Die
[2] https://www.cnbc.com/2025/08/11/us-china-truce-extension-hangs-in-the-balance-as-deadline-looms-.html
[3] https://www.ft.com/content/19442dba-c724-4825-9388-26219a12cb8a
[4] https://www.investors.com/research/nvidia-stock-nvda-2/?src=A00220
