US and China extend trade truce to January 10 before Trump-Xi meeting

The United States and China have extended their bilateral trade truce until January 10, US Treasury Secretary Scott Bessent announced Wednesday, easing the immediate risk of renewed tariff escalation between the world’s two largest economies. The extension pushes back the expiry of the "Busan Agreement" from November 10 to January 10, ahead of Chinese President Xi Jinping's planned meeting with US President Donald Trump. Bessent made the announcement after an unscheduled meeting with Chinese Vice Premier He Lifeng in Washington, saying the two sides had met to explore reaching a broader economic deal rather than resolving individual issues through smaller agreements. He noted that some Chinese deliverables under the existing framework "have not been perfect," while suggesting possible upcoming announcements on increased Chinese purchases of US agricultural products and financial services agreements. The Busan Agreement, reached by Trump and Xi in November 2025, de-escalated a sharp trade confrontation by reducing some US tariffs and easing Chinese retaliatory measures, including restrictions on critical minerals, while Beijing committed to purchasing US soybeans. The extension keeps the framework in place during Xi's Washington visit and into early 2027, with both countries also discussing cooperation on artificial intelligence.