U.S.–China Trade War Escalates Again: Has the Geneva Agreement Collapsed?

 Beijing accuses Washington of violating key trade terms, while the U.S. imposes new high-tech restrictions and revokes student visas.

🧭 Overview: Geneva Truce Under Threat?

Less than a month after the U.S. and China reached a temporary trade truce during high-level talks in Geneva, tensions between the world’s two largest economies are once again flaring up.

New U.S. Trade Restrictions: What's Changing?

On June 2, 2025, China accused the U.S. of “seriously violating” the Geneva agreement, citing new export restrictions on AI chips, semiconductor design software, and the revocation of hundreds of Chinese student visas.
(Source: The Guardian)

⚠️ New U.S. Trade Restrictions: What's Changing?

High-Tech Export Controls

The Biden administration (following prior policies) has rolled out a new set of export controls, including:

• Banning the export of advanced AI chips and design software to China.

• Warning U.S. companies to halt partnerships involving Huawei chipsets.

Student Visa Revocations

Hundreds of student visas for Chinese nationals have been cancelled, citing national security concerns.
Beijing condemned this as discriminatory and a direct breach of the Geneva trade agreement.

🇨🇳 China's Response: “Strong Countermeasures” Expected

China’s Ministry of Commerce declared the U.S. had “severely breached” the Geneva deal and warned of impending countermeasures to safeguard national interests.
(Source: Reuters)

📉 Market Impact: Global Shockwaves

The renewed conflict has triggered volatility across global financial markets:

• Asian stock indexes slumped on Monday morning.

• The U.S. dollar weakened, while the Euro hit a five-week high.

• Gold prices spiked as investors sought safe-haven assets.

🔮 What’s Next? A Path to Reconciliation?

Despite sharp rhetoric, both sides have hinted at possible future dialogue.

U.S. Treasury Secretary Scott Bessent suggested that President Biden and Chinese President Xi Jinping may hold a phone call in the coming days to ease tensions.
(Source: Politico)

🎯 Conclusion: No End in Sight Yet

The U.S.–China trade war appears to be entering a new and more volatile chapter.
The collapse of the Geneva agreement underscores deep-rooted mistrust and the challenges of forging a long-term resolution. While negotiations remain possible, the road ahead looks uncertain—especially in a world increasingly divided by technology and national securit