By Jarrett Renshaw and Karen Freifeld WASHINGTON/BEIJING/HONG KONG (Reuters) -Nvidia's planned resumption of sales of its H20 AI chips to China is part of U.S. negotiations on rare earths, Commerce Secretary Howard Lutnick said on Tuesday,

American chipmaking giant Nvidia says it plans to resume sales to China of an artificial intelligence chip that’s become part of a global race pitting the world’s biggest economies against each other.

The Trump administration is about to perform its latest reversal in trade negotiations with China, if Nvidia is to be believed. The company says it plans to resume sales of its H20 AI chip to China after securing assurances from Washington that it would approve the shipments.

China reported a better-than-expected economic growth as the world’s second largest economy took advantage of a trade truce with the US amid President Donald Trump’s tariff offensive.

Official figures showed modest growth in the second quarter as exports shifted to other countries and Beijing invested in manufacturing and infrastructure.

A surge of exports from Chinese manufacturers supported the growth, as customers and producers alike took advantage of the U.S.-China trade war ceasefire.

Australia and China are working to strengthen trade ties despite disagreements over security and human rights BEIJING — The leaders of Australia and China sought to deepen trade ties despite their differences over regional security and human rights at talks Tuesday in the Chinese capital.

The prime minister of Australia, a longtime US security partner in Asia, sought to focus his trip to China this week on business and trade opportunities, dodging thornier issues around US-China competition such as Taiwan or Beijing’s military expansion.