US-China Trade Truce Extended to January 10 as Bessent Announces Two-Month Postponement

Treasury Secretary Scott Bessent announced on September 23 a two-month extension of the bilateral trade truce between the United States and China. The "Busan Agreement," which was set to expire on November 10, has been extended through January 10, 2027. The announcement came just minutes after Chinese President Xi Jinping landed in Washington for his first state visit to the US in more than a decade, marking a moment of economic détente between the world's two largest economies.

Bessent made the announcement in an interview on Fox News Channel after holding an unscheduled meeting with Chinese Vice Premier He Lifeng in the US capital. "We will extend what we call the 'Busan Agreement' - the economic detente between the two countries that was scheduled to end on Nov. 10 - that is going to be extended until Jan. 10," Bessent said. The Treasury secretary described his meeting with He Lifeng as productive, noting that bilateral economic relations are going through a period of relative calm despite lingering tensions over issues such as technology and national security.

The Treasury secretary left open the possibility that a broader economic package could be agreed upon by January, or that the parties could "just roll the current deal" and extend it further. However, he noted that some deliverables from the Chinese side "have not been perfect" and that Washington wants to verify in the coming months whether Beijing will be more precise in implementing the agreement. Bessent's remarks suggest that, while satisfied with the overall direction, the administration remains vigilant about the concrete implementation of Beijing's commitments.

In the coming days, possible announcements on Chinese purchases of US agricultural products and agreements in financial services are expected, two areas where the parties have already made significant progress in recent months. On the table is also the possibility of lists of goods with reduced tariffs, a request advanced by the US Chamber of Commerce, which represents American companies with interests in international trade. The parties also proposed on Sunday an exchange of alerts on cyberattacks linked to artificial intelligence, a topic of growing importance given the two economies' mutual reliance on digital technologies.

The extension represents a win for economic stability in both countries, as the US and China are vital sources of goods for each other and for their millions of consumers and businesses. The Busan Agreement had been signed during bilateral negotiations and established a mutual reduction of tariffs, with Washington lowering duties on many Chinese products from 145 percent to 30 percent and Beijing reducing its own from 125 percent to 10 percent on selected American goods. Without the extension, the return to previous tariff levels would have hit key sectors such as consumer electronics, agriculture and industrial goods, with cascading effects on global supply chains.

Sources

• NBC News, "U.S. and China agree to extend trade truce through Jan. 10, Bessent says," September 23, 2026. nbcnews.com
• Anadolu Agency, "US-China agree to extend bilateral trade truce to Jan. 10," September 23, 2026. aa.com.tr