U.S., China extend trade truce to Jan. 10

The United States and China have agreed to prolong their current trade truce until January 10, U.S. Treasury Secretary Scott Bessent said in an interview. The arrangement, often referred to as the Busan-era truce, had been due to expire earlier and will now continue into the new year. Bessent said the extension is intended to provide additional time for economic talks between the two sides.

The decision comes at a moment of high-level political engagement. Bessent disclosed the new deadline shortly after President Donald Trump greeted Chinese President Xi Jinping on the tarmac in Washington at the start of Xi’s state visit. Bessent’s comments followed his own meetings with Chinese Vice Premier He Lifeng in New York and Washington.

Under the existing Busan-era framework, the United States has suspended or reduced certain tariffs on Chinese goods. In return, China has committed to supply a steady flow of rare earth minerals, which are important inputs for a range of industrial and technology applications. These understandings remain in place under the new January 10 extension.

U.S. officials say that not all of China’s promised deliverables have been met, with rare-earth deliveries singled out as an area where performance has lagged. Bessent indicated that the additional time provided by the extension is meant to allow negotiators to address such gaps and assess how the framework is functioning.

Bessent said officials are evaluating two main paths for the period after January 10. One option is to roll over the current Busan arrangement with similar terms. The other is to negotiate a broader trade package that could adjust or expand the existing commitments.

He also flagged the possibility of new, more targeted measures being announced during Xi’s visit. Areas under discussion include financial services, where changes could affect market access or cooperation mechanisms, and agricultural purchases, where commitments could influence trade flows in key commodities. No specific figures or agreements were detailed at the time of his remarks.

While Bessent described the extension as an agreed step between Washington and Beijing, Chinese state media had not immediately confirmed the terms or publicly echoed his comments. Official Chinese readouts around Xi’s arrival instead emphasized general cooperation, without detailing the truce’s new timeline.

The timing of the announcement, coinciding with Xi’s high-profile state visit, underscores the link between trade negotiations and broader bilateral relations. With the new January 10 deadline set, both governments now face a defined window to resolve outstanding issues on tariffs, rare earth supplies, and potential new commitments in sectors such as agriculture and financial services.