The United States and China have agreed to extend their trade truce for an additional two months, U. S. Treasury Secretary Scott Bessent announced on Wednesday. The extension, which pushes the deadline to January 10, comes as Chinese President Xi Jinping begins a state visit to Washington, D. C., where he is expected to stay through Friday.
The trade agreement, initially set to expire in November, was established during a meeting between Xi and U. S. President Donald Trump in South Korea last October. While many anticipated a six-month extension, Bessent revealed that the shorter period indicates a desire from the U. S. to maintain pressure on China to fulfill more deliverables. Bessent's comments were made during an appearance on Fox News.
Chinese state media have yet to comment on the extension. However, Scott Kennedy from the Center for Strategic and International Studies suggested that the brief extension might increase the likelihood of Xi attending the G20 summit in Miami. The two leaders are also expected to meet at the APEC meeting in Shenzhen in November and again at the G20 summit in December.
Despite the extension, Jens Eskelund, president of the European Chamber of Commerce in China, noted that the truce does not resolve existing challenges faced by companies, such as the lack of a standardized process for rare earths export licenses.
In an official statement upon his arrival, Xi expressed optimism about the visit, stating that it would yield "fruitful results" for both countries. He emphasized the importance of partnership over rivalry and the need for a stable relationship where competition and differences are managed. However, the statement did not address tariffs or rare earths.
Footage from China's state broadcaster showed Trump and First Lady Melania Trump welcoming Xi and First Lady of China Peng Liyuan at the airport. The video focused on Xi and his wife receiving bouquets from children, rather than a handshake between the leaders. Trump mentioned to reporters that discussions with Xi would include the Iran war, among other topics.
Prior to Xi's arrival, Bessent met with Chinese Vice Premier He Lifeng in New York, where they discussed the establishment of an alert system for artificial intelligence incidents. This meeting highlights the ongoing dialogue between the two nations on technological advancements and their implications.
While major U. S. tech executives are expected to attend a summit dinner on Thursday, their Chinese counterparts are not anticipated to be present. Xi is accompanied by Politburo Standing Committee Member Cai Qi and China's top diplomat Wang Yi during his visit, according to state media reports.
