Story
China Confirms US Trade Truce Extension, Outlines Next Steps in Negotiations
Summary
China's commerce ministry said a two-month extension of its trade truce with the U.S. provides a stable environment for further negotiations, including discussions on a $30 billion reciprocal tariff cut and new working groups for key sectors.
China's commerce ministry on Monday confirmed a two-month extension of its trade truce with the United States, stating the move provides crucial space for both sides to advance negotiations. The ministry noted the extension creates a "relatively stable and predictable policy environment" for businesses operating in both countries.
The agreement, which pushes the deadline for new tariffs to January 10, was a key outcome of last week's summit in Washington between President Xi Jinping and U.S. President Donald Trump, according to the statement.
Path Forward on Trade
As a first step under a newly formed trade council, officials will discuss a reciprocal tariff cut on $30 billion worth of products. The ministry said this is aimed at stabilizing bilateral economic relations and creating better conditions for Chinese exports to the U.S.
To facilitate deeper engagement, the economic teams will conduct regular dialogues on several key areas:
Ad- Potential investment opportunities and barriers
- Enhancing policy transparency and predictability
- Responding to concerns from enterprises
Sector-Specific Agreements
The negotiations will also address specific industries. An agriculture working group will be established under the new trade council, with its first meeting scheduled before the end of the year to discuss market access and regulatory issues. The summit also produced a deal for China to import U.S. coal in 2027 and 2028, which the ministry said would supplement China's domestic market while supporting the U.S. coal industry.
Beyond commodities, the two nations have agreed to establish a communication channel for incidents related to artificial intelligence (AI) and will hold a follow-up dialogue by the end of November. The ministry's statement also said China would move to approve applications from U.S. and other foreign financial services firms to conduct business and open branches, and that communication would continue on increasing direct flights.
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