Trump-Xi Meeting: US-China Extend Trade Truce, Eye Bigger Economic Deal
The US and China agreed to extend their trade truce until January 10.
By Sakshi
New Delhi, September 24: The recent US-China meeting appears to have some positive outcomes, with the United States declaring trade-truce between the two nations by two months, until January 10. According to US Treasury Secretary Scott Bessent, both nations are working towards a potentially broader economic deal.
Following a tit-for-tat tariff war last year, US President Donald Trump and Chinese President Xi had met in South Korea in October and agreed to a one-year trade truce. On Wednesday, the announcement for the extension was made by Bessent after Chinese President Xi Jinping arrived in Washington.
Extension of Trade Truce
In an interview with Fox News’ Special Report with Bret Baier, Bessent said, “We will extend what we call the ‘Busan Agreement’ — the economic detente between the two countries that was scheduled to end on November 10 — that is going to be extended until January 10.”
Bessent added that both nations were still working towards a potentially broader economic deal. The agreement was originally set to expire in November but will now be extended until January 10.
The extension of the trade truce has not yet been confirmed by Chinese officials.
Bessent said it was possible that a larger economic package could be agreed upon by January. However, he said it was also possible that the two countries could “just roll the current deal” and extend it further.
Xi Meets Trump
Shortly after Xi arrived in the United States at Joint Base Andrews, where Trump greeted him on the tarmac, Bessent made his remarks. On Thursday, Trump and Xi are scheduled to meet at the White House, followed by a state dinner. This is Xi’s first trip to the US in more than a decade.
“There are some deliverables that have not been perfect on the Chinese side, so we also 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,” Bessent said.
Asked whether the Iran war would be discussed with Xi, Trump said, “I will be talking about that and many other subjects, but it’s all coming along, including that.”
Xi is expected to discuss trade tariffs, technology, artificial intelligence, military ties, conflicts in West Asia and the Russia-Ukraine war during his meetings with Trump.
The initial agreement was reached in Busan, South Korea, last year. Under the agreement, both sides lifted export restrictions on critical minerals and high-tech goods. They also extended a pause on their triple-digit tariffs.
Since Sunday, Bessent and US Trade Representative Jamieson Greer have been holding talks with Chinese Vice Premier He Lifeng and other officials to lay the groundwork for the closely watched state visit.
Bessent and his Chinese counterpart, He Lifeng, met at the World Bank in Washington on Wednesday, where they discussed extending the trade truce, according to Bessent.
Bessent and Greer also said that the US and China had proposed sharing notifications about hacking incidents involving artificial intelligence, particularly those related to national security.
(With AP Inputs)
