US and China Extend Trade Truce to January 10
Treasury Secretary Bessent confirms the bilateral agreement will now run until mid-January, following a meeting in Washington.
Key points
- The US and China extended their trade truce from November 10 to January 10.
- Treasury Secretary Bessent confirmed the extension after a meeting with Vice Premier He Lifeng.
- President Xi Jinping arrived in Washington on Wednesday, expressing confidence in the talks.
US Treasury Secretary Scott Bessent announced that the US and China have extended their trade truce. The agreement now runs through January 10. This decision follows a meeting in Washington.
The extension was discussed during an unscheduled meeting with China’s Vice Premier He Lifeng. According to Bessent, the deal was originally set to expire in November.
Bessent outlines next steps
Bessent stated that a larger economic package might be agreed upon by January. He also noted that the current deal could simply be extended further.
The Treasury Secretary referred to the arrangement as the “Busan Agreement.” This term describes the economic détente between the two nations.
Xi arrives for talks
Chinese President Xi Jinping arrived at Joint Base Andrews on Wednesday. He landed shortly before 6 p.m. local time.
Xi expressed confidence that the trip would yield fruitful results. His arrival coincides with the announcement of the truce extension.
Market reaction to news
Currency markets showed limited movement immediately after the news. The AUD/USD pair was down 0.06% at 0.7034.
Investors are watching for potential broader economic packages. The extension provides temporary stability in global supply chains.
