Extension of Busan Trade Truce
The United States and China have agreed to extend the "Busan Agreement" trade truce until January 10 (originally set to expire on November 10). The extension was announced by U.S. Treasury Secretary Scott Bessent in an interview with Fox News after his meeting with Chinese Vice‑Premier He Lifeng in Washington, ahead of the upcoming summit between President Donald Trump and President Xi Jinping.
The truce, first reached at a Trump‑Xi meeting in Busan, South Korea, last year, had lowered tariffs that had surged during a period of tit‑for‑tat trade measures. As part of the agreement, China also agreed to ease restrictions on rare‑earth magnets and other critical minerals.
Bessent indicated that Washington remains open to either further extending the existing arrangement or pursuing a larger trade deal that Beijing has proposed. Discussions continue on broader trade issues, including artificial intelligence and critical minerals, as the two sides work toward a more comprehensive economic agreement.