US, China prolong trade truce through January

The United States and China have extended their trade truce until January 10, allowing both sides to explore a broader economic agreement, according to Treasury Secretary Scott Bessent. The agreement, which had been set to expire on November 10, now extends by two months, providing additional time for negotiations. President Donald Trump and Chinese President Xi Jinping are set to meet in Washington for a state visit and talks starting on September 23.

Bessent revealed that negotiators are considering moving beyond the existing framework and reaching a wider accord by January, although the feasibility of this outcome remains uncertain. China has fulfilled its pledge to purchase 25 million tonnes of US soybeans but lags behind on a commitment involving $17 billion of other agricultural goods.

Both sides are also discussing limited tariff relief on about $30 billion worth of non-critical goods, as well as measures covering financial services, farm purchases, and non-tariff barriers. Technology and critical minerals are expected to be part of the discussions, with China recently adding more substances to the list requiring export permits to the US, Mexico, and Canada.

Despite the extension of the truce, major disputes remain unresolved, including differences over Taiwan, advanced technology, investment restrictions, and security concerns.