'US-China trade truce to be extended to January'

Treasury Secretary Scott Bessent disclosed on Wednesday that the United States and China have reached an agreement to extend their trade truce for an additional two months, with the new deadline set for January 10th. This extension was formally announced during a meeting between Bessent and Vice Premier He Lifeng in New York on Sunday, followed by discussions with Treasury Deputy Secretary Denise Mayle and Vice President Yu Wenxiang in Washington on Wednesday.

President Xi Jinping's arrival in the United States for a significant summit with US President Donald Trump on Thursday only underscored the importance of this extension. According to Bessent, the agreement is referred to as the Busan Agreement, a term used to describe the economic detente between the two nations that was originally set to conclude on November 10th.

The extension provides additional time to assess potential economic developments. The truce, which took effect last year, came about after US President Donald Trump and Chinese President Xi Jinping reached a deal aimed at reducing the back-and-forth tariffs and extending certain tariff exclusions. In addition, the United States pledged to suspend certain retaliatory actions following an investigation into China's shipbuilding industry.

Bessent also hinted at the possibility that both parties could further reduce tariffs on approximately $30 billion worth of non-sensitive goods. Following intensive talks with his Chinese counterparts on Sunday, Greer informed reporters that negotiations were ongoing, with discussions extending beyond trade.

Moreover, the meetings in New York and Washington served to establish a notification mechanism designed to flag AI-related incidents or potential threats, signaling the evolving nature of negotiations beyond traditional economic concerns.