US, China extend trade truce until January 2027
US President Donald Trump and Chinese leader Xi Jinping have agreed to extend a trade truce between the world’s two largest economies until Jan. 10, 2027, buying more time for negotiations as tensions persist over rare earths, technology restrictions and other trade issues.
US Treasury Secretary Scott Bessent announced the extension as Xi arrived in the United States for his first state visit to the country since 2015, Bloomberg reported.
The existing agreement will remain in place for an additional two months.
The compromise falls short of what either side had initially sought. US Trade Representative Jamieson Greer said Washington had been looking for a three-to-six-month extension, while Beijing wanted the current terms maintained through the end of Trump’s presidency.
Several disputes remain unresolved.
Washington has accused Beijing of failing to fully meet commitments on supplies of rare earths, which are crucial for defense and high-tech manufacturing, and has also expressed dissatisfaction with the pace of Chinese purchases of US agricultural products.
China, meanwhile, appears confident that US dependence on Chinese rare earths will discourage Washington from sharply escalating tariffs.
“We can live with that because we are confident that within two months the US cannot become independent of Chinese rare-earth supply,” said Wu Xinbo, director of Fudan University’s Center for American Studies and a former adviser to China’s Foreign Ministry.
“They’ll come back and beg for Chinese exports of rare earth magnets to the US.”