US-China Trade Truce Extended Until January 10 Ahead of Trump-Xi Talks

The US-China trade truce has been extended until January 10, US Treasury Secretary Scott Bessent said on Wednesday. The decision keeps the current trade arrangement between the two countries in place and reduces the immediate risk of higher tariffs before a planned meeting between US President Donald Trump and Chinese President Xi Jinping.

Bessent announced the renewal following an impromptu meeting with Chinese Vise Premier He Lifeng in Washington. The talks occurred as both countries prepared for the upcoming Trump-Xi meeting.

The existing deal, referred to as the “Busan Agreement,” was set to expire on November 10. The new extension will be operational until January 10.

US-China Trade Truce Gets More Time

According to Bessent, the two sides agreed to extend the arrangement while debating whether to pursue a larger trade agreement. Instead of resolving each conflict through separate accords, Washington and Beijing are considering how to address more issues through a larger framework.

Trump and Xi established a trade truce in Busan, South Korea, in November 2025. It helped to ease tensions following a heated debate over tariffs, trade restrictions, and China’s control over vital minerals and rare earths.

Under the accord, the US reduced some taxes on Chinese goods. China has likewise suspended or relaxed numerous measures imposed in response to US trade moves.

Beijing also committed to buy US agricultural products, including soybeans. Both parties also agreed to put several additional trade restrictions on hold.

The initial arrangement was meant to last until November 10. Its extension ensures that the same structure will be in place throughout Xi’s visit to Washington and until the beginning of 2027.

Bessent Says Some Issues Remain Unresolved

He stated that Washington expects to see additional progress following the recent conversations.

The Treasury secretary also suggested that further announcements could be made in the coming days. These may include increasing Chinese purchases of American agricultural goods.

According to Bessent, future announcements may include potential financial services cooperation.

Bessent and He Lifeng have met several times in recent days. Their meetings have included trade and broader economic issues as the two countries prepare for the Trump-Xi talks.

The US and China have also discussed cooperation in areas such as artificial intelligence. For the time being, the extension maintains the existing trade framework as both governments continue to negotiate unsolved issues.