Buoyed by China’s arrival in Washington for a three-day state visit, the United States and China have actually agreed to continue their trade truce for another two months, now until January 10, 2027. US Treasury Secretary Scott Bessent, who met Chinese Vice Premier, He Lifeng in Washington on Wednesday, announced the extension.
This agreement was set to end on November 10. The extension will see Washington and Beijing further roll back some of the tariffs and avoid some new trade barriers during further negotiations. The extra time may give both sides an opportunity to negotiate with one another to form a more comprehensive pact than just a restatement of the current one, Bessent said.
I can’t imagine a bigger deal can be made,” he said. That we are just going to roll out the current deal is what I don’t know,” Bessent told Fox News, as the future of negotiations remains unclear.
Bessent and He met at World Bank in Washington, New York, following meetings in New York. Additionally, the treasury secretary said Xi could announce in his visit financial services companies and Chinese purchases of US agriculture products.
Xi’s arrival was immediate just before his talks with U.S. President Donald Trump. An unusual airport greeting that highlighted the significance of the visit, Trump personally welcomed the Chinese leader at Joint Base Andrews.
Disputes over artificial intelligence, critical minerals, Taiwan, among other areas, continue to be key areas of tension in US-China relations, while trade issues are perhaps the most prominent concern. Meanwhile, the two nations are still negotiating agricultural purchases and export limits on rare-earth materials and technology while trying to figure out if a wider trade deal will be completed before the Jan. 31st deadline.