"Trade Truce" Extended China continues to suspend some trade measures with the United States for two months

U.S. President Trump and Chinese leader Xi Jinping reached a trade truce agreement in Busan, South Korea, in October 2025. Under the deal, Trump agreed to cut tariffs in exchange for Beijing cracking down on fentanyl precursor chemicals, resuming purchases of soybeans and suspending export controls on rare earths. The truce agreement was originally scheduled to expire on November 10 this year. However, when Xi Jinping visited Washington in September this year, the two countries announced that they had agreed to extend the trade truce for two months to January 10, 2027.

China's Ministry of Commerce stated on November 9 that it would extend the export control exemption period for some critical minerals and related technologies until January 10, 2027; continue to suspend relevant restrictive measures against 11 US entities in the "Unreliable Entity List" and 16 entities in the "Export Control List" until January 10, 2027; continue to suspend the implementation of countermeasures against five US-related subsidiaries of Hanwha Marine Corporation for 2 months until 2027 January 10th.

The official website of the Ministry of Transport of China also issued an announcement on November 9 that it will continue to suspend the collection of special port fees for US ships calling at Chinese ports, and suspend investigations into the supply chain security of the shipping industry, shipbuilding industry and related industrial chains until January 10, 2027.

An announcement issued by the Tariff Commission of the State Council of China on November 9 shows that China will continue to suspend the implementation of the 24% tariff rate on the United States and Canada from 13:01 on November 10, 2026, and retain the 10% tariff rate on the United States and Canada. The announcement also stated that China's continued suspension of some additional tariffs on the United States will help provide a relatively stable and predictable policy environment for cooperation between enterprises on both sides and promote the continued, stable and positive development of Sino-US economic and trade relations. However, the announcement also stated, "China has noted that the United States has repeatedly stated that it intends to replace the tariffs under the International Emergency Economic Powers Act (IEEPA) that have been judged to be invalid through Section 301 tariffs. China will continue to pay close attention to the follow-up measures of the United States and adjust relevant tariff countermeasures as appropriate."

Shenzhen's "Special Xi Conference" is about to be held

Before China issued the above announcement, the Chinese leader on China-U.S. economic and trade, Chinese Vice Premier He Lifeng, held a video call with the U.S. leaders, U.S. Treasury Secretary Bessent and Trade Representative Greer, last Friday (November 6).

Xi Jinping and Trump are expected to meet next week at the Asia-Pacific Economic Cooperation (APEC) leaders' summit in China. This will be the third meeting between the two this year.

After Trump and Xi Jinping met in Washington in September, the two sides proposed a reciprocal tariff reduction plan totaling $60 billion. The Chinese Ministry of Commerce stated that the United States will reduce tariffs on approximately US$30 billion of imported goods from China, including toys, home appliances, baby products, kitchen and bathroom supplies, and holiday gifts. China will reduce tariffs on approximately US$30 billion of imported goods from the United States, including agricultural products, personal care products, medical equipment, and coal. However, the plan has not yet been finalized.