The United States and China have agreed to extend their existing trade truce by two months, giving both sides additional time to negotiate a potentially broader trade agreement, US Treasury Secretary Scott Bessent said on Wednesday.
The extension comes ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping, following two rounds of talks between Bessent and Chinese Vice Premier He Lifeng in four days.
Speaking to Fox News, Bessent said the latest discussions focused on whether the two countries could move beyond a series of smaller agreements and work towards a more comprehensive trade deal. The extension of the truce, originally agreed in Busan, South Korea, in May, will allow Washington and Beijing more time to address outstanding economic issues.
Bessent said the possibility of a broader agreement was raised during 12 hours of talks with He on Sunday, although he did not provide details about its potential scope. Their meeting on Wednesday lasted about 90 minutes.
The US Treasury secretary said it remained unclear whether a broader deal could be reached by January 10. He also said Washington was pressing Beijing to make greater progress on commitments under the existing agreement.
According to Bessent, China is meeting its commitment to purchase 25 million tonnes of US soybeans but is behind on a pledge to buy $17 billion worth of other US agricultural products. US officials have also said China has been slow to fulfil commitments related to rare earth supplies.
The upcoming Trump-Xi summit could result in announcements covering several areas, including the possible removal of tariffs on $30 billion worth of non-critical goods, financial services and agricultural purchases, Bessent said.
The two sides are also discussing artificial intelligence cooperation. During talks in New York on Sunday, Bessent, He and US Trade Representative Jamieson Greer agreed to establish a communications hotline for notifying each other about AI safety incidents. Chinese state media confirmed that AI was discussed, although Beijing’s position on the proposed hotline remains unclear.
The current trade truce has significantly reduced bilateral tariff rates, which had risen sharply following successive rounds of tariff increases and retaliatory measures. China had also agreed to restore supplies of rare earth magnets and other critical minerals after imposing restrictions on their exports.
