Offshore Yuan Holds Ahead of Tariff Truce Deadline

The offshore yuan held its recent decline to around 7.19 per dollar on Monday, as investors braced for the looming US-China tariff truce deadline that could determine the next phase of bilateral trade relations. Talks have intensified with chip policy emerging as a central issue, and markets largely expect an extension to avoid steep tariffs. Reports said Nvidia and AMD agreed to share part of their China revenues with the US in exchange for export licences, while Beijing is pushing for relief from curbs on advanced AI chips ahead of a possible Trump–Xi summit. On the data front, China’s consumer inflation was unchanged in July while factory-gate prices stayed in deflation, highlighting weak demand alongside a fragile truce with the US. In Washington, Treasury Secretary Bessent reaffirmed an October deadline to wrap up negotiations with remaining countries, after recent deals with the EU, Japan, and others, while talks with India continue toward a targeted October–November completion.