The United States and China have agreed to push back their trade truce deadline by two months, buying President Donald Trump and President Xi Jinping additional time to navigate their broader economic rivalry. The extension coincides with Xi’s three-day state visit to Washington.
US Treasury Secretary Scott Bessent said the truce would now hold until January 10, extending it past its original November 10 cutoff. The announcement followed an unscheduled meeting Bessent held with Chinese Vice-Premier He Lifeng in Washington earlier that day.
A truce, but plenty left to settle
According to Bessent, both sides agreed to extend what Washington refers to as the “Busan Agreement” while continuing to evaluate Beijing’s follow-through on its commitments. He noted that China had not fully honored certain pledges particularly around rare-earth exports and that the extra time would let Washington assess further progress.
The extension also comes amid fresh talk of a more expansive trade agreement. Bessent said Beijing had floated the idea of a “bigger deal,” and that both countries had already agreed to launch an AI dialogue and set up a joint trade body during earlier discussions.
The truce had previously helped de-escalate tensions after Trump’s sweeping tariffs sparked a major trade standoff. Under the Busan agreement, both nations cut certain tariffs, paused further restrictions and rare-earth export curbs, and secured Chinese commitments on US soybean purchases and fentanyl precursor controls.
Trade is just one item on the Trump-Xi agenda
Beyond trade, today’s talks are expected to touch on Taiwan, technology, AI, and China’s ties with Iran. Xi is likely to reiterate Beijing’s stance on Taiwan including objections to US arms sales while Trump is expected to hold firm on existing export controls.
AI has become another front where the two powers may try to maintain dialogue despite intense competition. Bessent said the US and China are working to identify shared risks, such as unchecked AI agents and non-state actors exploiting AI for cyberattacks or biological threats. A follow-up meeting on AI safety is planned for Shenzhen in roughly two months.
Overall, these talks are more likely to produce a set of narrower, stabilizing agreements than a sweeping resolution leaving the deeper disputes over trade, technology, Taiwan, and Iran still unresolved.
