US-China trade truce extended from November 10 to January 10 as Washington and Beijing seek a broader economic deal ahead of Trump-Xi talks
The United States and China have agreed to extend their bilateral trade truce until January 10, US Treasury Secretary Scott Bessent said on Wednesday, easing the immediate risk of a renewed escalation in tariffs between the world’s two largest economies.
Bessent made the announcement after an unscheduled meeting with Chinese Vice Premier He Lifeng in Washington, just ahead of Chinese President Xi Jinping’s planned meeting with US President Donald Trump.
The extension pushes back the expiry of what Bessent called the “Busan Agreement” from November 10 to January 10.
“We have agreed today that we will extend what we call the Busan Agreement,” Bessent said in an interview with Fox News.
He said the two sides had met to explore whether they could reach a broader deal rather than continue resolving individual issues through smaller agreements.
What is the Busan Agreement?
The agreement refers to the trade truce reached by Trump and Xi in Busan, South Korea, in November 2025. The arrangement helped de-escalate a sharp US-China trade confrontation, including tariff measures and Chinese restrictions on critical minerals and rare earths.
Under the deal, the US reduced some tariffs on Chinese goods while China paused or eased several retaliatory measures. Beijing also committed to purchases of US agricultural products, including soybeans, while both sides agreed to suspend a range of other trade restrictions.
More from BusinessThe truce had been scheduled to run until November 10. Its extension means the existing framework will remain in place during Xi’s visit to Washington and into the beginning of 2027.
Bessent flags unresolved issues
Bessent indicated that Washington still wants Beijing to do more to implement commitments under the agreement.
“There are some deliverables that have not been perfect on the Chinese side,” he said, adding that the US wanted to see whether China could make fuller progress after the latest discussions.
The Treasury secretary also suggested that more announcements could follow in the coming days.
These could include increased Chinese purchases of American agricultural products and potential agreements involving financial services, he said.
The latest talks come after Bessent and He held several rounds of discussions in recent days covering trade and broader economic issues. The two countries have also been discussing cooperation on artificial intelligence and other areas ahead of the Trump-Xi meeting.
