U.S., China Extend Trade Truce to January 2027 as Xi Visits Washington

The United States and China have agreed to extend their trade ceasefire by two months until January 10, 2027, U.S. Treasury Secretary Scott Bessent announced on September 24, 2026. The extension of the so-called "Busan Agreement"—originally negotiated in October 2025 when President Trump and Chinese President Xi Jinping met in South Korea—delays the current expiration date of November 10 and provides additional time for comprehensive negotiations on multiple trade issues.

Bessent announced the extension during an interview with Fox News as Trump personally greeted Xi at Joint Base Andrews near Washington for the start of Xi's state visit, the Chinese president's first to the U.S. in eleven years. The Treasury Secretary stated that both sides sought "a bigger deal as opposed to just a series of smaller things," signaling an ambition to move beyond incremental agreements. The extension comes after marathon negotiating sessions between Bessent and Chinese Vice Premier He Lifeng in New York on September 20 and in Washington on September 23.

The trade truce addresses several key areas under negotiation: agricultural purchases (where Chinese officials have reportedly fallen behind on commitments), rare earth mineral exports (which China had planned to subject to stricter export controls beginning November 10), financial services cooperation, and artificial intelligence risk management. Bessent indicated that both sides are working to reduce tariffs on approximately $30 billion in imports and may issue joint statements on financial services and agricultural purchases. On artificial intelligence, Bessent expressed confidence that China would agree to a new notification mechanism for national security concerns in the sector, noting that China is "very eager" to engage with the United States on AI-related issues.

The broader context shows that prior to the ceasefire, the U.S. and China had imposed tit-for-tat tariffs exceeding 100 percent. Under the existing truce, both nations have partially reduced tariffs, suspended reciprocal tariff escalations, and lifted various trade and economic restrictions. The January 10 deadline creates a window before planned international summits in both countries—China's Communist Party plenum on October 26–29 and the Asia-Pacific Economic Cooperation forum in Shenzhen on November 18–19, alongside the U.S. G20 summit in Miami on December 14–15.

China had sought a longer extension of the trade truce, according to observers. The two-month extension also postpones China's implementation of stricter export controls on rare earth minerals, which would have required government approval for the cross-border movement of any product containing at least 0.1 percent rare earth materials from China—a requirement that prompted warnings from European automotive manufacturers and U.S. officials. Sean Stein, president of the US-China Business Council, characterized the extension as "absolutely necessary," though uncertainty remains regarding its full scope and implementation.