China's commerce ministry said a two-month extension of the trade truce with the United States, through January 10, provides space for both sides to resolve economic and trade issues. The extension was a key outcome of the recent summit between Presidents Xi Jinping and Donald Trump.
The extended trade truce between the US and China aims to de-escalate trade tensions, creating a more predictable environment for businesses and potentially leading to reduced tariffs on billions of dollars in goods, impacting global trade flows and corporate investment decisions.
China's commerce ministry announced on Monday that a two-month extension of the trade truce with the United States, set to last until January 10, will provide space for both nations to evaluate their existing arrangements and plan for future resolutions of economic and trade issues. The ministry also stated that the extension would foster a more stable and predictable policy environment for corporate cooperation and ongoing discussions.
The extension was a significant outcome of the recent summit between Chinese President Xi Jinping and US President Donald Trump in Washington. As part of the agreement, both countries will establish a trade council. One of the initial actions under this council will be to discuss reciprocal tariff cuts on $30 billion worth of products, aimed at stabilizing bilateral economic and trade relations and improving conditions for Chinese exports to the US.
Under the trade council, economic and trade teams from both sides will engage in regular dialogues concerning investment opportunities, policy transparency, and addressing enterprise concerns. Additionally, an agriculture working group will be formed, with its first meeting scheduled before the end of the year to address market access and regulations for agricultural products. The summit also resulted in a coal trade agreement, with China set to import US coal in 2027 and 2028, a move the Chinese ministry noted would benefit both China's domestic market and the US coal industry.
Further agreements include establishing a communication channel for artificial intelligence-related incidents, with a follow-up dialogue planned for November. China also committed to reviewing and approving foreign financial services institutions, including those with US capital, for business operations and branch openings within China. Discussions are also ongoing to increase the number of flights between the two countries.
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