China says US trade truce extension creates space to advance talks

China has extended the US-China trade truce for two months until January 10, providing an opportunity to assess the implementation of their economic and trade agreement, while also laying the groundwork for further cooperation. The extension came about during the second annual summit between President Xi Jinping and US President Donald Trump, which took place in Washington last week.

China's Commerce Ministry confirmed the extension, stating it would offer a stable and predictable policy environment for businesses and ongoing dialogue. The truce extension is a key outcome of the summit, alongside the formation of a trade council to discuss a reciprocal tariff reduction on $30 billion worth of US products, aiming to maintain stable economic and trade relations.

The economic and trade teams from both countries will engage in regular dialogues to identify investment opportunities, address barriers, and enhance policy transparency. Additionally, an agriculture working group will be established under the trade council, with its first meeting slated before the year ends. This group will focus on market access and regulation for agricultural products between the two nations.

China and the US also reached a coal trade agreement, with Beijing agreeing to import coal from the United States in 2027 and 2028. This move will supplement China's domestic coal market and provide economic benefits and employment to the US coal industry. On artificial intelligence, both sides agreed to establish a communication channel for incident resolution and hold a follow-up dialogue by the end of November.

Furthermore, China will review and approve foreign financial services institutions, including those with US capital, to operate in the country. Finally, there will be continued discussions on increasing air travel between China and the United States.