WASHINGTON — In a significant development for global economic stability, the United States and China have agreed to extend a crucial bilateral trade truce, Treasury Secretary Scott Bessent announced on Wednesday. The agreement, which was originally set to expire on November 10, will now remain in effect until January 10, providing a vital window for further negotiations between the world’s two largest economies.
The announcement followed an unscheduled, high-level meeting in Washington between Secretary Bessent and Chinese Vice Premier He Lifeng. Speaking in an interview on the Fox News Channel, Bessent confirmed the extension of the “Busan Agreement”—the formal title for the current economic détente.
“We will extend what we call the ‘Busan Agreement’… until Jan. 10,” Bessent stated. He noted that while the current extension provides breathing room, both nations are exploring the possibility of a more comprehensive economic package. “It is possible a larger economic package will be agreed upon by January, but it’s also possible we just roll the current deal and extend it further,” he added.
The timing of the announcement carries significant diplomatic weight, coming only minutes after Chinese President Xi Jinping landed in Washington to begin his first state visit to the United States in over a decade. Bessent signaled that the Treasury is keeping a close watch on Beijing’s performance, noting that while the trade relationship is stabilizing, there are still areas where China has underperformed. “There are some deliverables that have not been perfect on the Chinese side,” Bessent said. “We want to see, now that we’ve sat down and told them our expectations, if over the coming months they can be more fulsome in enacting the agreement.”
Anticipation is building for further announcements during President Xi’s multiday visit. Bessent hinted that the Chinese delegation may soon commit to increased purchases of American agricultural products and forge new partnerships within the financial services sector.
The breakthrough comes at the end of a busy week of preparation by U.S. officials. Since Sunday, Secretary Bessent and U.S. Trade Representative Jamieson Greer have been engaged in intensive talks with their Chinese counterparts. Earlier in the week, the U.S. and China proposed a framework for exchanging alerts regarding AI-related hacking incidents, a move aimed at bolstering mutual national security.
Additionally, U.S. officials are pushing forward with President Donald Trump’s “Board of Trade” initiative. U.S. Trade Representative Jamieson Greer suggested that the two nations are working on lists of goods that could see lower tariffs. Greer indicated that the focus would likely be on consumer goods and low-tech items from China, while the U.S. would look to export energy products, agricultural goods, and medical devices.
As President Xi’s state visit unfolds, the extension of the trade truce is expected to be greeted with relief by international markets, offering a steadying hand to the complex and vital trade network that sustains businesses and consumers in both nations.
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