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US, China prolong trade truce through January

The United States and China have agreed to extend their trade truce by two months, keeping the arrangement in place until January 10 as President Donald Trump hosts Chinese President Xi Jinping in Washington for a state visit and a new round of talks.

US Treasury Secretary Scott Bessent announced the extension after meeting Chinese Vice Premier He Lifeng in Washington on Wednesday, saying the extra time would allow both sides to explore a broader economic agreement rather than rely on a succession of smaller measures. The existing truce had been due to expire on November 10.

Trump welcomed Xi at Joint Base Andrews on Wednesday evening ahead of formal White House meetings on Thursday. The visit, running from September 23 to 25, is Xi’s first trip to Washington in more than a decade and follows Trump’s visit to China in May.

Trade is expected to dominate the economic discussions. Bessent said negotiators were examining whether the two governments could move beyond the current framework and reach a wider accord by January, although he cautioned that it was not yet clear whether such an agreement could be completed within that period.

Washington is also pressing Beijing to fulfil commitments made under the existing arrangement. Bessent said China was meeting a pledge to purchase 25 million tonnes of US soybeans but remained behind on a commitment involving $17 billion of other agricultural goods. US officials have also raised concerns about the pace of Chinese rare-earth deliveries.

The two sides are considering limited tariff relief on about $30 billion worth of non-critical goods, together with measures covering financial services, farm purchases and non-tariff barriers. US Trade Representative Jamieson Greer has said announcements on agriculture and trade barriers could emerge from the meetings.

The current framework grew out of negotiations that followed a sharp escalation in bilateral tariffs, when duties imposed by both countries climbed above 100 per cent on some goods. Subsequent talks reduced the immediate pressure and established a temporary truce while officials worked on longer-term arrangements.

China has sought greater predictability in the relationship as its exporters adjust to US trade restrictions and as Washington continues to use tariffs and export controls in areas it considers strategically sensitive. The United States, meanwhile, has pushed for more balanced trade, stronger market access for its companies and farmers, and tighter enforcement of Chinese purchase commitments.

Technology is also on the agenda. Bessent and He discussed a proposed communications mechanism for major artificial-intelligence safety incidents, an idea US officials have compared with an emergency hotline intended to reduce the risk of misunderstanding between the two powers. The Chinese side has acknowledged discussions on artificial intelligence, though the scope of any formal mechanism remains unsettled.

Other issues likely to feature include critical minerals, export controls, fentanyl precursor chemicals and military communications. China this week added two more chemicals to a list requiring export permits for shipments to the United States, Mexico and Canada, expanding controls on substances that can be used to manufacture synthetic drugs.

Xi said on arrival that China and the United States should be partners rather than rivals and called for a more stable relationship. The White House has framed the visit as an opportunity to pursue what it calls strategic stability based on reciprocity and fairness.

Despite the warmer ceremonial setting, major disputes remain unresolved. Washington and Beijing continue to differ over Taiwan, advanced technology, investment restrictions and security questions, while both sides are seeking to protect leverage in negotiations over trade and supply chains.

The White House programme includes a formal state arrival ceremony, talks between the two leaders and a state dinner. Xi is accompanied by senior officials including Cai Qi, a member of the Communist Party’s Politburo Standing Committee, and Foreign Minister Wang Yi.



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