Even as US President Donald Trump upends China’s factory floors, he seems to be laying the ground for an easing in the tech war. In a reversal this week, the White House told chipmaker Nvidia it could soon resume sales of its less advanced China-focused H20 artificial intelligence accelerator. AMD received similar assurances from the US Commerce Department.

Only a few years ago, the Biden administration had declared export controls a “new strategic asset” to help the US maintain “as large a lead as possible” over China in advanced technology. Trump’s shift in strategy, which angered China hawks in Washington, raises a key question as he sets the stage for a meeting with Chinese President Xi Jinping later this year: how far will the US go in rolling back a range of measures restricting business between the world’s biggest economies imposed in the name of national security?

“A wide range of bargaining chips are on the table now for a potential US-China tech grand bargain: semiconductor manufacturing equipment, rare earths, battery technology, AI chips, even mutual market access,” says Kevin Xu, a tech investor and founder of US-based Interconnected Capital who formerly worked in the Obama administration.—Stephanie Phang

What You Need to Know Today

Trump’s U-turn has made Nvidia chief Jensen Huang the man of the moment, again. On his third trip to China this year, the world’s ninth richest man announced that Nvidia will resume China sales of its H20 chips, and opened a major supply-chain expo in Beijing. Take a look at how Huang, 62, is becoming increasingly adept at pulling off a delicate diplomatic dance that is both benefiting his company and helping the two economies manage their differences.

Seemingly less adept at juggling are provincial officials in China. President Xi questioned the need for local governments to crowd into the same emerging industries such as artificial intelligence and “new-energy vehicles,” a rare rebuke that reflects growing concerns about deflation at home and trade tensions abroad. The blunt, colloquial criticism was made in a meeting in Beijing this week on urban development, according to an article on the front page of the People’s Daily.

Xi Jinping. Photographer: Qilai Shen/Bloomberg

The trade war is dominating the agenda everywhere. As some of the world’s most powerful finance ministers meet at a beach-side resort in South Africa, this year’s Group of 20 host is struggling to keep its priorities on course. Trump’s tariff shockers and the acrimony they have wrought between major economies is complicating South Africa’s stated aims, which include debt relief, sustainable finance and reforms to the world’s development-finance institutions.

Elsewhere, Indonesia is seeking tariff exemptions on commodities exports to the US, and the Philippines is hoping to secure a trade agreement when President Ferdinand Marcos Jr. meets Trump in Washington during his July 20-22 visit.  Thailand expects the US to reduce a threatened tariff on its exports from 36% to a level in line with regional neighbors after presenting a “very substantial improvement” in a fresh round of talks, Finance Minister Pichai Chunhavajira said.

Ferdinand Marcos Jr., Philippines' president. Photographer: Samsul Said/Bloomberg

A rebel army is building a rare-earth empire on China’s border. The Bloomberg Big Take looks at how the Kachin Independence Organization, which fought for decades in obscurity in Myanmar, came to be supplying essential minerals to manufacturers around the world.

One of Singapore’s highly coveted bungalows has been sold for S$25 million ($19 million) to a granddaughter of the late Indonesian billionaire Eka Tjipta Widjaja. Mimi Yuliana Maeloa bought the house near the country’s main Orchard Road shopping belt, in a so-called good class bungalow area, designated for opulent mansions. There are only about 2,800 of these properties, making them highly sought after by the ultra rich. 

European Union states have approved a fresh sanctions package on Russia over its war against Ukraine, which includes a revised oil price cap and new banking restrictions, after Slovakia lifted its veto. The package is the bloc’s 18th since Moscow’s full scale invasion. Oil rose on the lower price cap for Russian crude, and after data showed the US economy holding up despite the fallout from the Washington-led trade war.

What You’ll Need to Know Tomorrow

For Your Commute

Godzilla, arguably the most famous symbol of Tokyo’s storied film industry, has appeared in more than three dozen movies since its 1954 debut. The films have grossed billions of dollars at the box office, spawning legions of merchandise, from thermoses to plushies, and turning the fictional creature into a global household name. But outside Japan, few can name Toho, the media company that put the havoc-wreaking monster on the big screen more than 70 years ago. CEO Hiroyasu Matsuoka, great-grandson of the company’s founder, is trying to change that.

A still from the 1954 film Godzilla.

Bloomberg Sustainable Business Summit: Business leaders and investors from around the world will gather in Singapore on July 30 for solutions-driven discussions on the future of climate goal setting, Asia's energy mix in the era of artificial intelligence, the global sustainable finance race and many other critical topics that are driving resilience and long-term value. Click here for more details.

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