US and China extend trade truce to 10 January
The extension is intended to allow further talks during Xi’s state visit to Washington.
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The United States and China are extending their trade truce until 10 January. US Treasury Secretary Scott Bessent said this after his meeting in Washington with Chinese Vice-Premier He Lifeng.
According to Bessent, the two countries have agreed to extend the so-called Busan agreement by two months. The previous arrangement was due to expire on 10 November. The US secretary told Fox News that Washington and Beijing would prefer to reach a broader agreement rather than once again making only separate arrangements.
The announcement came shortly after Chinese President Xi Jinping arrived in Washington for a state visit from 23 to 25 September. The Chinese government said Xi was received at Joint Base Andrews by President Donald Trump. The White House had announced an official welcoming ceremony and a state dinner for Thursday.
The trade arrangement followed last year’s severe tariff escalation. At the time, the United States and China imposed high import tariffs on each other and restricted access to certain strategic products. According to Associated Press, the two countries have largely avoided the broadest punitive measures since then, but targeted restrictions and sanctions against companies remain in place.
Exactly what is being extended has not yet been set out in a public joint document. Bessent referred to the Busan agreement, but did not provide a complete list of tariffs, export restrictions or other conditions. Nor is it clear what concessions China and the United States are making to each other. The Chinese statement on Xi’s arrival emphasises stability and cooperation, but does not mention the new trade deadline.
For businesses, the extension mainly means that a new abrupt escalation is being postponed for now. That may be relevant to producers dependent on Chinese raw materials, US technology or cross-border agricultural and industrial trade. It does not remove the uncertainty, however: the two countries continue to compete for technological influence, market share and control over strategic supply chains.
Artificial intelligence is also on the agenda. Bessent previously said that the United States had proposed a reporting system for AI incidents. According to AP, export controls on advanced technology and the struggle for AI leadership remain important points of contention. Taiwan, access to critical minerals and Chinese trade with Iran also play a role in the broader relationship.
The extension buys the negotiators time, but is not a breakthrough. A new deadline follows on 10 January. If Washington and Beijing do not reach broader agreements by then, tariffs and export restrictions could once again become part of the power struggle between the world’s two largest economies.
One story, several perspectives
What is established
- According to the US Treasury Secretary, the trade arrangement has been extended until 10 January.
- The precise terms of the extension have not been fully disclosed.
- The United States and China continue simultaneously to negotiate, compete and maintain targeted trade restrictions.
- The extension coincides with Xi’s state visit to Washington.
Left
Arguments A temporary trade truce can prevent escalation, but should not come at the expense of workers’ rights, human rights or protection against economic concentrations of power. Structural agreements should compel companies to take responsibility for their supply chains and technology.
Values International cooperation, social protection, human rights and public oversight of large companies.
Consequences An agreement without firm conditions could perpetuate dependence on vulnerable supply chains. Greater oversight and diversification may be more expensive in the short term, but would reduce social and geopolitical risks.
Centre
Arguments An extension is useful as long as it creates room for verifiable agreements and predictability for businesses. The institutional approach calls for step-by-step negotiations, clear enforcement and discussions about technology and critical raw materials.
Values Stability, legal certainty, proportionality and workable international agreements.
Consequences A limited extension may prevent escalation, but remains vulnerable as long as the underlying conflicts over technology, Taiwan and market power are not resolved.
Right
Arguments Washington must prevent China from using the trade truce to increase strategic dependencies. Tariffs, export controls and stricter security conditions may remain necessary to protect US industry, technology and national security.
Values National sovereignty, economic resilience, security and protection of domestic production.
Consequences A tough negotiating position may secure better concessions, but also increases the risk of higher prices, retaliation and new disruptions to global supply chains.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts have been confirmed by Reuters, AP and official US and Chinese sources. The text explicitly marks which terms have not yet been made public.
- confirmed The United States and China are extending their trade truce until 10 January. — Reuters quotes Scott Bessent on the new end date. source
- confirmed Bessent spoke with Chinese Vice-Premier He Lifeng. — Reuters reports that the announcement followed their meeting. source
- confirmed Xi Jinping arrived in Washington on 23 September for a state visit. — China’s Ministry of Foreign Affairs reports his arrival and the state visit. source
- confirmed The White House had planned a welcoming ceremony and state dinner. — The official programme lists both events. source
- confirmed The trade arrangement followed an earlier severe tariff escalation. — AP describes the earlier trade war and the truce that followed it. source
- confirmed AI, export controls and critical minerals remain points of contention. — AP identifies these issues as aspects of broader US-China competition. source
Editor's note
It is certain that Bessent announced the extension until 10 January and that Xi arrived in Washington. The precise terms of the extension and separate Chinese confirmation of the trade arrangement are absent from the public sources consulted.Sources
- VS en China komen overeen om de Busan-overeenkomst te verlengen tot januari, zegt Bessent — Reuters via MarketScreener
- Trump and Xi see tensions flare over AI, trade and Iran but still seek stability — Associated Press
- First Lady Melania Trump Releases Details Ahead of Xi Jinping’s Visit — The White House
- Xi Jinping arrives in Washington for a state visit — Ministry of Foreign Affairs of the People’s Republic of China
More on this in Dutch media
- NRC — „verenigde staten”
- NU.nl — „verenigde staten”
- De Telegraaf — „verenigde staten”