US President Donald Trump has decided to lift sanctions on 10 Chinese entities and allow them to purchase semiconductor chips from Nvidia as he meets Chinese President Xi Jinping on Thursday.
This is the first time the United States has shown some leniency towards Chinese firms, months after the Trump administration slapped sanctions on entities linked to the Chinese government over reciprocal trade tariffs.
The two leaders are also expected to discuss the war in Iran, technology issues, Taiwan, and other key points of contention during the two-day visit. The stakes are particularly high for Trump, who is seeking trade concessions and Beijing’s support in efforts to end the war in Iran, ahead of the crucial midterm elections in November.
Trump’s approval ratings have declined significantly after attacks on Venezuela and Iran and his lacklustre stance on the Palestinian issue, where the Israel–Palestinian conflict has left over 71,000 people dead and more than 9,000 still under the rubble.
While Trump said he did not want China’s help in resolving the Strait of Hormuz crisis, US Secretary of State Marco Rubio has urged Beijing to play a role in resolving the crisis.
Speaking to reporters aboard Air Force One, he said the Iran war is a “huge source of instability” and “threatens to destabilise Asia more than any other part of the world because it’s heavily reliant on the straits for energy”. “It’s in [China’s] interest to resolve this. We hope to convince them to play a more active role in getting Iran to walk away from what they’re doing now in the Persian Gulf,” he said.
