U.S. and China Extend Trade Truce to Keep Tariffs Lower and Rare Earths Flowing
Quick Look
- Treasury Secretary Scott Bessent announced that the U.S. and China have extended their trade truce to maintain lower tariffs and ensure continued rare earths flow, with the deal now running through Jan.
- 10, ahead of Chinese President Xi Jinping's state visit to Washington, D.C.
AI-generated summary
Why It Matters
The U.S. and China initially agreed to a one-year trade truce in October 2024, which was set to expire in November 2024, but has now been extended to January 10, 2025, to maintain lower tariffs and ensure rare earths continue to flow.
The U.S. and China have extended a truce to keep tariffs lower for longer and rare earths flowing, U.S. Treasury Secretary Scott Bessent said Wednesday local time.
He was speaking on Fox News, as Chinese President Xi Jinping landed in Washington, D.C. for a state visit through Friday.
Xi and Trump agreed to a one-year trade truce at a meeting in South Korea last October. The deal, which was set to expire in November, will now be extended to Jan. 10, Bessent said. He added that Beijing needs to fulfill more deliverables.
Ahead of this week's summit, many had expected the truce would be extended by six months or longer.
Chinese state media did not immediately note Bessent's comments on the trade truce.
Xi said in an official readout for his arrival that he is confident the visit will produce "fruitful results" for both sides. He said the two countries should be partners, not rivals, and work to build a stable relationship where competition and differences are managed. The readout did not mention tariffs, rare earths or artificial intelligence.
What to Watch
AI outlook — possibilities, not facts
The U.S. and China will engage in further negotiations to address technology and AI cooperation before the truce expires in January 2025.
Possible · Within weeks
Open Questions
- What specific deliverables does China need to fulfill under the extended truce?
- How will the truce extension affect ongoing negotiations on technology transfer and artificial intelligence?
- What is the reaction from U.S. industry groups reliant on rare earths imports?
