US, China agree to extend trade truce by two months, work on bigger deal, Bessent says

The United States and China have agreed to extend a trade truce for an additional two months, providing more time to negotiate a larger trade deal, according to U.S. Treasury Secretary Scott Bessent. The extension was announced on Wednesday, following Bessent's second meeting in four days with Chinese Vice Premier He Lifeng. The two-month extension, agreed upon in Busan, South Korea in May, aims to facilitate discussions on economic matters between the two nations.

Bessent mentioned that Beijing had expressed interest in a more extensive U.S.-China trade deal during their 12-hour talks on Sunday, though no specifics were provided. The recent meeting, which lasted approximately 90 minutes, was conducted to explore the potential for a more significant trade agreement before the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping on Thursday. When asked if a deal could be reached by January 10, Bessent did not provide a definitive answer.