US and China extend trade truce by two months as Xi visits Washington

The US and China have agreed to a two-month extension of their trade truce, announced by Treasury Secretary Scott Bessent as Chinese President Xi Jinping arrived in Washington for his first US state visit in eleven years. The extension runs until January 10, 2027, though China has not confirmed the date. The deal, which maintains suspended tariffs and export controls, falls short of the three-to-six month extension some US officials had floated, suggesting unresolved issues over rare earth exports and other deliverables. Xi was greeted on the tarmac by President Trump, a break from protocol that analysts see as a gesture of respect toward America's chief geopolitical rival. The extension covers two upcoming world leader summits, but expectations for major breakthroughs remain low. Deep divisions persist on trade, Taiwan, and AI, while Trump seeks progress on agricultural purchases and communication channels. The brief timeframe indicates the truce is more about lowering tensions than resolving deeper complaints.