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

The United States and China have extended a trade truce by two months, giving negotiators more time to work on a potentially larger trade deal, US Treasury Secretary Scott Bessent announced on Wednesday. The extension comes after a meeting between Bessent and Chinese Vice Premier He Lifeng in Washington, which aimed to discuss the possibility of a more comprehensive US-China trade agreement.

Bessent told Fox News that the two-month truce extension, originally agreed upon in Busan, South Korea in May, would provide both countries the opportunity to explore new economic possibilities. During their meeting on Sunday, Beijing reportedly raised the prospect of a broader trade deal, though no specific details were provided.

The upcoming January 10 deadline for the existing truce remains uncertain, with Bessent acknowledging that Washington is also urging China to be more transparent about its commitments under the current agreement. While China appears to be meeting its requirement to purchase 25 million tons of U.S. soybeans, it is falling short on its promise to buy $17 billion worth of other agricultural goods.

The upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for Thursday, may yield announcements on reducing tariffs on $30 billion worth of non-critical goods, improving financial services, and increasing agricultural purchases. US officials expect some progress to be made during the summit, as it marks the second of potentially four meetings between the two leaders this year.