US to extend China trade truce until January

US Treasury Secretary Scott Bessent announced on Wednesday that the United States and China have agreed to extend their trade truce until January 10th. This extension came into effect on November 10th when the original truce was set to end. The extension, known as the Busan Agreement, was reached after extensive negotiations between Bessent and his Chinese counterpart, Vice Premier He Lifeng, in New York and Washington.

The deal was made during a high-stakes summit with President Donald Trump, which Xi Jinping was attending in the US. The extension will give both countries more time to address economic issues. The truce, which began last year, was a result of a deal struck between Trump and Xi. It included a reduction of tariffs and an extension of certain tariff exclusions.

Washington also agreed to suspend certain actions related to China's shipbuilding sector. Additionally, there is a possibility that both sides could reduce tariffs on $30 billion worth of non-sensitive goods. The talks also covered other topics, including creating a notification mechanism to address AI-related incidents or threats.