US and China Extend Trade Truce for Two Months Ahead of Trump-Xi Meeting

The United States and China have agreed to extend their trade truce, known as the Busan Agreement, for two additional months until January 10, following talks between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Washington on September 23. The extension falls short of the three-to-six-month period some US officials sought, and Bessent noted China has not fully implemented parts of the agreement. The US will use the shorter window to observe whether Beijing improves compliance, including on rare earth exports, which fell 13% in August. The two-month extension covers the upcoming APEC and G20 summits, where President Trump and President Xi Jinping are expected to meet. Analysts say the November APEC summit is increasingly critical for determining whether strategic stability can continue into 2027.