And for now, at least, Beijing views the trade-deficit-obsessed Trump as a more pragmatic and adaptable partner to work with than the China hawks that called the shots during Trump’s first term. China’s leaders now believe they can broker a trade deal with Trump to reduce tensions.

Their relationship is defined by a bloody border dispute, a vast power imbalance and a fierce contest for influence across Asia. Yet, President Donald Trump’s latest trade war may be achieving the unthinkable: pushing India and China into a wary but tactical embrace.

For years, the US has restricted the sale of powerful AI chips to China. But Trump is letting sales of less-advanced chips happen.

U.S. President Donald Trump has targeted top economic rival China with a cascade of tariff orders on billions of dollars of imported goods aimed at narrowing a wide trade deficit, bringing back lost manufacturing and crippling the fentanyl trade.

Analysts fear Trump’s 15% cut of China chip sales could drive Chinese developers into the arms of Huawei. Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI.

Trump’s major gamble on China continues to pay off, with Chinese negotiators willing to make some concessions. Trump has maintained very high tariffs on America’s second-biggest trading partner without tipping the economy into recession.

Gavekal Dragonomics’ Arthur Kroeber says tariffs haven’t hurt China’s growth perceptions and Beijing won’t accept a weak U.S. trade deal leaving little scope for a trade deal between the two major economies.