U.S. Treasury Secretary Scott Bessent announced Wednesday that the temporary truce preventing higher tariffs and keeping rare earth materials flowing between the United States and China has been extended by two months. The agreement now remains in effect until January 10.
The announcement came as Chinese President Xi Jinping landed in Washington, D.C., for a state visit scheduled to run through Friday. Footage broadcast on Chinese state television showed President Donald Trump and First Lady Melania Trump greeting Xi and Chinese First Lady Peng Liyuan upon arrival at the foot of the presidential jet. The video highlighted the Chinese leaders shaking hands with children presenting bouquets but did not capture a handshake between Trump and Xi.
Bessent revealed the extension during an interview on Fox News. The original one-year deal, agreed upon by Trump and Xi during a summit in South Korea last October, was set to expire in November. While many observers had anticipated a longer extension of six months or more, Bessent indicated that Beijing still needs to fulfill additional commitments under the framework.
Chinese state media did not immediately report on Bessent’s comments regarding the updated timeline. Prior to Xi’s arrival, Bessent held talks in New York with Chinese Vice Premier He Lifeng. According to Bessent, the discussions included plans to establish an alert system for artificial intelligence incidents.
Beijing waiting on additional commitments feels like a classic delay tactic. Skeptical about any real progress.
The AI incident alert system is actually a smart addition. Hope they lock that in quickly.
Interesting that the Trump-Xi handshake wasn’t captured. Does this signal subtle diplomatic friction?
Only two months? Seems like a band-aid rather than a real resolution to the ongoing trade tensions.