US and China extend trade truce to January 10 amid Xi's Washington visit

Treasury Secretary Scott Bessent announced on September 24, 2026, that the United States and China have agreed to extend their trade ceasefire by two months until January 10, 2027. The extension applies to what officials call the Busan Agreement, a one-year truce originally set to expire on November 10, 2026. The agreement, first negotiated between President Donald Trump and Chinese President Xi Jinping in South Korea in October 2025, suspended reciprocal tariffs that had exceeded 100 percent and included partial tariff reductions and lifting of trade and economic restrictions.

The announcement came as Xi arrived in Washington on September 24 for his first state visit in eleven years. Trump personally greeted Xi on the tarmac at Joint Base Andrews outside Washington, an unusual diplomatic gesture. The extension provides additional negotiating time on outstanding issues including agricultural purchases, rare earth minerals, financial services, and artificial intelligence risk management. According to US officials, China has fallen behind on agricultural purchase commitments, and the US is working to encourage increased purchases.

During economic consultations, Vice Premier He Lifeng and Bessent held their first formal dialogue on artificial intelligence, establishing new mechanisms for managing AI-related risks and fostering cooperation. The discussions addressed uncontrolled AI systems and potential use of AI in cyberattacks and biological weapons development. Chinese officials stated the talks followed principles of mutual respect, peaceful coexistence, and win-win cooperation, with both sides also discussing reciprocal tariff cuts, trade and investment councils, and implementation of existing agreements.

The two-month extension coincides with significant political events in both countries, including US midterm elections scheduled for November 3 and the G20 summit in Miami on December 14-15. China's Communist Party will hold its Fifth Plenary Session of the 20th Central Committee on October 26-29, and the Asia-Pacific Economic Cooperation summit will convene in Shenzhen on November 18-19. US business groups indicated the extension was necessary, though uncertainty remains regarding its scope and implementation. Analysts noted the tight timeline may be designed to test China's willingness to fulfill outstanding commitments, particularly on agricultural exports and critical minerals, before considering longer-term agreements.