US and China agree to extend trade truce by two months, Bessent says

The United States and China have agreed to extend a bilateral trade truce by two months, until January 10, Treasury Secretary Scott Bessent reported. The extension comes shortly after Treasury Secretary Bessent and China’s vice premier, He Lifeng, met in Washington for an unscheduled discussion. The decision to prolong the "Busan Agreement," which was set to expire on November 10, was made in hopes of achieving further economic cooperation between the two nations.

Bessent revealed during a Fox News Channel interview that it is possible for the agreement to be further extended. However, he also noted that there are still some deliverables from the Chinese side that need improvement, so they will monitor the situation over the coming months to ensure full implementation of the agreement. President Xi Jinping, who arrived in Washington for a state visit, is expected to bring further economic initiatives.

Bessent hinted at potential agreements on increased purchases of American agricultural products and potential deals in the financial services sector during the summit. Earlier, Bessent and U.S. Trade Representative Jamieson Greer had been working with their Chinese counterparts to prepare for the state visit. On Sunday, both Bessent and Greer announced plans to exchange alerts about AI-related hacking incidents and discuss lower tariffs on certain goods in the future.