US President Donald Trump’s Treasury Secretary Scott Bessent announced that Washington and Beijing have agreed to extend their trade truce shortly after Chinese leader Xi Jinping arrived in Washington for a three-day visit. But the truce, which was set to lapse in November, has been extended for just two months, setting up another deadline for early next year.
“I don’t know whether a bigger deal can be done. The Treasury Secretary also teased further announcements from Xi’s visit. Trade is one of the biggest flashpoints between Washington and Beijing, apart from artificial intelligence, Trump’s war with Iran, and China’s designs on Taiwan. Last October, Trump and Xi, during a meeting in Busan, South Korea, rolled back restrictions on critical minerals and high-tech exports that had threatened to cripple global supply chains.
I don’t know whether we will just roll the current deal,” Bessent said, noting the extension till January 10 could give both nations more time to discuss their issues at upcoming international summits in China in November and Florida in December. Under the temporary deal, both sides also extended a pause on their triple-digit tariffs, which was set to expire November 10.
Bessent said he and his Chinese counterpart, Vice Premier He Lifeng, met at the World Bank in Washington earlier Wednesday, where they agreed to extend the truce.
