Bessent Says U.S.-China Trade Truce Extended Two Months to Jan. 10 as Xi Arrives in Washington

U.S. Treasury Secretary Scott Bessent announced Wednesday that the United States and China have extended their one-year trade truce by two months, pushing the expiration from November to Jan. 10. The extension keeps tariffs lower for longer and keeps rare earths flowing between the two countries.

Bessent made the announcement on Fox News as Chinese President Xi Jinping arrived in Washington, D.C., for a state visit through Friday. Xi and Donald Trump agreed to the one-year truce at a meeting in South Korea last October.

The Deal’s New Deadline

The original deal was set to expire in November. Instead, it will now run until Jan. 10. Bessent said Beijing needs to fulfill more deliverables under the agreement.

Many observers had expected the truce to be extended by six months or longer ahead of this week’s summit. The two-month extension falls short of that prediction, though it does extend the arrangement beyond its initial end date.

Chinese state media did not immediately note Bessent’s comments on the trade truce.

Xi’s Arrival in Washington

Footage streamed on China’s state broadcaster showed Trump and First Lady Melania Trump meeting Xi and First Lady of China Peng Liyuan at the foot of Xi’s jet. The video focused on Xi and his wife shaking hands with two children presenting them each with bouquets. It did not show the leaders shaking hands themselves.

Bessent met with Chinese Vice Premier He Lifeng in New York ahead of Xi’s arrival. The two sides discussed setting up an alert system for artificial intelligence incidents.

“Beijing needs to fulfill more deliverables.”

That line from Bessent signals that the extension is not unconditional. The United States is watching Beijing closely to see if it delivers on its promises under the truce.

What Comes Next

The two-month extension buys time for both sides to assess the state of the relationship.

The visit continues through Friday, and the coming days will show whether the two leaders can find common ground on the outstanding deliverables Beijing still owes.

Here is the sequence of key dates:

1. October: Xi and Trump agree to a one-year truce in South Korea.
2. November: Original expiration date for the truce.
3. Now: Bessent announces the two-month extension.
4. Jan. 10: New expiration date for the truce.

The extension extends the arrangement beyond its initial end date. The Jan. 10 deadline will determine whether the arrangement runs longer or collapses.

The extension is a relief for businesses caught between the two economies. It keeps tariffs lower for longer and keeps rare earths flowing.

But the relief is partial. The two-month extension is shorter than what many expected, and Bessent’s warning about deliverables means Beijing faces scrutiny over whether it follows through on its commitments.

Where the paper stands

The paper backs neither side’s stated position but supports keeping the channels open for diplomacy and compromise, favoring a deal over a standoff, while remaining skeptical of foreign entanglements and trade wars alike. The two-month extension keeps tariffs lower and rare earths flowing, which matters for American business, but it also leaves the arrangement fragile, since Beijing must still deliver on its promises.

The extension buys time for assessment, which is useful. But the fact that Bessent said Beijing needs to fulfill more deliverables shows the arrangement remains conditional rather than settled.

What the reader should watch for is whether Beijing actually delivers on those promises before the Jan. 10 deadline arrives. The paper will continue to cover the relationship closely, favoring deals over standoffs wherever possible.

See the video the story is built around at CNBC.

rare earths · tariffs · trade truce · U.S. China · Xi Jinping