President Donald Trump is meeting with Vladimir Putin, and security analysts caution that China views the talks as a test case for potential aggression in the Indo-Pacific region.

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.

Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue, which would go to the U.S. government. Trump said he also negotiated a similar deal with chipmaker Advanced Micro Devices (AMD).

The bilateral agreement to extend the temporary trade war truce this week came after a third round of negotiations framed by both sides as positive. Trump’s advisers regularly cite his “excellent” personal relationship with Xi and continue to weigh the possibility of a face-to-face meeting in China later this year.

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.

There's peace and quiet as another extension of the trade truce was announced this week. But it may not last, writes Scott Kennedy.

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.

U.S. soybean prices soared to a two-week high on Monday after President Donald Trump urged China to quadruple its purchases ahead of a tariff truce deadline, though analysts questioned the feasibility of any such deal.