China Eases Chip Export Ban in Landmark US-China Trade Deal

China will begin easing an export ban on automotive computer chips vital to production of cars across the world as part of a trade deal struck between the US and China, the White House has said. The White House confirmed details of the deal in a new fact sheet after Xi Jinping and Donald Trump met in South Korea this week. The nations also reached agreements on US soybean exports, the supply of rare earth minerals, and the materials used in production of the drug fentanyl. The deal de-escalates a trade war between the world's two largest economies after Trump hit China with tariffs after he entered office this year, leading to rounds of retaliatory tariffs and global business uncertainty. According to the White House, the easing of the chip export ban will allow US automakers to access the necessary computer chips for production, which has been severely impacted by the ban. The ban had been in place since 2019 and had led to a shortage of chips in the global market. The deal also includes provisions for increased US soybean exports to China, which is expected to benefit US farmers and the agricultural industry. Chinese Embassy in Washington spokesman Liu Pengyu told the BBC in a statement that details of the agreements reached had been shared by "competent authorities." "China-US economic and trade relations are mutually beneficial in nature," he said. "As President Xi Jinping noted, the business relationship should continue to serve as the anchor and driving force for China-US relations, not a stumbling block." The statement reflects the Chinese government's long-standing position that trade relations with the US should be based on mutual benefit and cooperation. The trade war between the US and China has had far-reaching consequences for the global economy, including higher tariffs and reduced trade volumes. The deal is seen as a significant step towards resolving the trade tensions and restoring stability to the global economy. The agreement also reflects the growing importance of trade relations between the US and China, which are the world's two largest economies. The deal is expected to have a positive impact on the global automotive industry, which has been severely impacted by the chip shortage. Automakers such as General Motors and Ford have been forced to suspend production or reduce output due to the shortage. The easing of the chip export ban is expected to allow them to resume production and meet global demand. The next developments in the deal are expected to be announced in the coming weeks, with the White House and Chinese government officials set to meet to finalize the details. The deal is seen as a significant step towards resolving the trade tensions and restoring stability to the global economy.