U.S.-China trade truce extended for two months, Bessent says, as Xi begins state visit

The U.S. and China have extended a truce to keep tariffs lower for longer and rare earths flowing, U.S. Treasury Secretary Scott Bessent said Wednesday local time.

He was speaking on Fox News, as Chinese President Xi Jinping landed in Washington, D.C. for a state visit through Friday.

Xi and Trump agreed to a one-year trade truce at a meeting in South Korea last October. The deal, which was set to expire in November, will now be extended to Jan. 10, Bessent said. He added that Beijing needs to fulfill more deliverables.

Ahead of this week's summit, many had expected the truce would be extended by six months or longer.

The U.S. and China should discuss their differences on trade issues on the basis of mutual benefit, without actively imposing restrictions, said Dong Shaopeng, senior researcher at Renmin University of China. He expected the trade truce could be continually improved and extended.

Chinese state media did not immediately note Bessent's comments on the trade truce.

The two-month extension "suggests to me the U.S. is unsatisfied with China's offers and wants to keep the heat on, with a bonus being it is more likely that Xi goes to the G20 in Miami," said Scott Kennedy of the U.S.-based think tank Center for Strategic and International Studies.

Trump visited Beijing in May. The two leaders could also meet alongside an APEC meeting in Shenzhen in November, and the G20 summit in Miami in December.