After Trump-Xi handshake, Bessent extends truce

US Treasury Secretary Scott Bessent revealed that the United States and China have agreed to prolong their one-year trade truce until January 10, following a handshake between President Donald Trump and Chinese President Xi Jinping at Joint Base Andrews. Speaking to Fox News after a meeting with Chinese Vice Premier He Lifeng, Bessent confirmed that the extension would grant the two nations more time to negotiate a comprehensive economic deal.

The extension of the trade truce, known as the "Busan Agreement," was set to conclude on November 10. Bessent explained that the agreement would now be extended until January 10. He also discussed the economic pressure placed on Iran, stating that the US aims to sever Tehran's financial resources. Bessent outlined three potential outcomes of the conflict, such as internal regime instability, an uprising in Iran, or Tehran engaging in negotiations.

Additionally, Bessent mentioned discussions with He on artificial intelligence, proposing a mechanism to alert each nation about AI-related safety incidents that could pose national security risks. Bessent dismissed rumors of him becoming Trump's AI czar as "probably fake news." China expressed interest in engaging with Washington on AI, emphasizing the US's continued technological leadership.

The meeting of Trump and Xi is taking place amid ongoing trade and economic tensions, with the two leaders set to hold bilateral talks at the White House on Thursday and a state dinner later.