The United States and China have agreed to extend their trade truce, originally set to expire on 10/11, until 10/1. This extension will provide both nations with additional time to assess potential economic actions, US Treasury Secretary Scott Bessent stated on 23/9.
The initial one-year agreement, known as the Busan Agreement, was forged last year between Chinese President Tap Can Binh and then-US President Donald Trump on the sidelines of the APEC Summit in South Korea. It addressed critical issues such as rare earths, essential minerals, and import tariffs. Before Bessent's announcement, many observers had anticipated an extension of six months or longer.
Economic relations between the United States and China have been turbulent for over one year, following President Trump's second term. Washington's imposition of new import tariffs since early last year triggered retaliatory measures from Beijing, at one point escalating tariff rates between the two economies to three digits. Tensions subsequently eased as both countries reduced tariffs to two digits after several rounds of trade negotiations. Additionally, some of Trump's recent tariffs were overturned by the US Supreme Court.
Bessent's announcement comes as Chinese President Tap Can Binh arrives in Washington for his first visit to the United States in over one decade. The US and Chinese leaders are scheduled to hold talks on 24/9. According to Xinhua, President Tap Can Binh's visit is expected to bring greater stability to US-China relations and to the global situation.
Last week, US Treasury Secretary Scott Bessent and Chinese Vice Premier Ha Lap Phong held preliminary discussions on establishing an artificial intelligence (AI) communication channel ahead of the leaders' summit. However, few details about this meeting have been disclosed.
When questioned by Fox News about the possibility of a larger trade agreement before 10/1, Bessent stated that the outcome remains uncertain. He also noted that Washington is urging China to "more fully implement" its commitments under the current agreement in the coming months.
According to Bessent, Beijing is fulfilling its commitment to purchase 25 million tons of soybeans, but has not yet met the target of USD 17 billion in other agricultural products. US officials also reported last week that China is delaying rare earth deliveries.
By Ha Thu (Reuters, CNBC)
