U.S. and China extend trade truce through January 10

The United States and China agreed Wednesday to extend their trade truce through January 10, Treasury Secretary Scott Bessent announced, as Chinese President Xi Jinping touched down in Washington for a three-day state visit.

A Two-Month Extension

Bessent said the so-called "Busan Agreement" — the trade framework signed by President Donald Trump and Xi in South Korea last October — had been set to expire on November 10 but would now remain in place for two additional months. The announcement came after an unscheduled meeting between Bessent and Chinese Vice Premier He Lifeng earlier Wednesday in Washington.nbcnews+2

"We met today to see if we could do a bigger deal as opposed to just a series of smaller things," Bessent said on Fox News ↘ 0.63% Channel's "Special Report" program, according to Reuters. "We have agreed today that we will extend what we call the Busan Agreement."reuters

Bessent also noted that some Chinese commitments under the deal had fallen short. "There are some deliverables that have not been perfect on the Chinese side, so we also want to see, now that we've sat down and told them our expectations, if over the coming months they can be more fulsome in enacting the agreement," he said.nbcnews

A Broader Deal in View

The Treasury secretary indicated the U.S. is open to pursuing a more expansive trade arrangement. Reuters reported that potential areas for expanded cooperation could include Chinese exports of consumer goods and low-tech items, while the U.S. could offer energy, agricultural goods, and medical devices under preferential terms. Bessent also signaled that further announcements could come in the days ahead, including Chinese purchases of American farm products and deals in the financial services sector.reuters+1

Xi Arrives for Historic State Visit

The trade extension landed just minutes after Xi arrived at Joint Base Andrews outside Washington, where Trump personally greeted the Chinese leader — an unusual gesture that the White House framed as a sign of respect. The visit, running from September 23 to 25, includes a formal state dinner at the White House on Thursday and a tour of the National Archives on Friday.wikipedia+1

The original Busan Agreement, reached on October 30, 2025, lowered U.S. tariffs on Chinese exports from 57 percent to 47 percent and saw China suspend retaliatory tariffs on American agricultural products and its most recent rare earth export controls for one year. Whether the extension serves as a bridge to a deeper restructuring of trade relations between the world's two largest economies remains the central question heading into the summit.cfr