Amid tariffs war, AI and chip exports could drive US-China ties

US President Donald Trump’s tariffs against China may be a precursor to a trade deal between the two countries. The Trump administration’s position on artificial intelligence and semiconductor export controls will be key to any negotiations with China.

The US President has professed that he hopes he can reach a trade deal with China and they can work together on issues, according to CNN.

Trump has also paused the ban on social media app TikTok, which is owned by Chinese firm ByteDance.

US-China relations

Trump had assumed a hawkish position on China during his first term as well. The position was later echoed by his successor Joe Biden, who put export restrictions in place for materials used for manufacturing semiconductors and advanced chips, including three kinds of software tools.

The regulations put restrictions on 140 companies including Chinese firms Naura Technology Group, SiCarrier and Piotech.

Also Read : Ozzy Osbourne and Black Sabbath to reunite for a final spectacle at Villa Park

TikTok sale

The US could push for buying TikTok. The government had earlier called for ByteDance to divest its US business to allow the app to function. While Trump has temporarily paused the ban on the social media app, he has also floated the idea that Microsoft was in talks to buy the video sharing platform.

The announcement of a sovereign wealth fund by the US can prove key to TikTok’s sale. Trump has indicated that the fund could possibly buy the app, the BBC reported.

Semiconductors, AI to be significant in US-China ties

The rise of DeepSeek has sparked concern among investors on whether the United States will be able to hold an edge in AI. According to Investor's Daily Business, some experts feel that restrictions on advanced chips could motivate China to research more efficient methods of training and modelling AI software.

According to the outlet, chip export controls will be central to any trade deal negotiations between the US and China. Trump’s 10 percent tariffs on China, while leading to a similar response by Beijing, have not matched up with his election rhetoric to impose 60 percent tariffs on Chinese products. This casts doubt over the amount of tough negotiations the US could pursue. Trump's position on AI and chips controls will be key to any trade deal with China.

On its part, China had earlier indicated that it wanted to avoid a trade dispute like Trump’s first presidency. Export controls on chips, domestic economic pressures and a pause on tariffs could bring it to the negotiating table, but any deal would not be easy to reach.

Also Read: British Airways resets Loyalty Scheme following controversy: changes explained

FAQs

1. What has Donald Trump said about the sovereign wealth fund?
Donald Trump said that the fund would be “one of the biggest” globally.


2. What is the deadline for ByteDance divesting its US business?
The last date is April 5.