Certain American chips are essential for cars and other industrial goods made in China—a vulnerability revealed in tariff exemptions pushed by Beijing.

It was news the rest of the world had been waiting to hear as astonishingly high tariffs - up to 245% on some Chinese exports to the US - throttle trade between the world's two biggest economies, raising the spectre of a recession.

After three months of bluster and huge tariffs on both sides, Beijing and the Trump administration are softening their language on holding negotiations.