US and China extend trade truce ahead of presidential summit

Analysts say that the relatively short window, while a positive sign, could also raise pressure on both Beijing and Washington

An extension of the US-China trade truce, agreed upon at an unscheduled meeting between the two countries’ top economic officials, underscores a willingness to contain trade tensions, according to analysts who deemed it a positive signal for this week’s presidential summit.

While the rollover extends the truce by only two months, the analysts said it provided businesses with a measure of short-term certainty while raising the stakes for the next round of talks to determine whether the truce can be sustained.

Vice-Premier He Lifeng and US Treasury Secretary Scott Bessent held the unscheduled meeting in Washington on Wednesday ahead of a sit-down between President Xi Jinping and US President Donald Trump. Afterwards, the two sides agreed to extend the trade truce – reached in October in Busan, South Korea – pushing the deadline from November 2026 to January, Bessent told Fox News.

Zhu Tian, an economics professor and vice-president at the China Europe International Business School in Shanghai, said the extension was still an encouraging sign for the numerous businesses with a stake in China-US trade.