Full Breakdown
U.S. and China Extend the “Busan Agreement” Truce to January 10
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Extension of the Trade Truce
On September 23, Treasury Secretary Scott Bessent announced that the United States and China have agreed to prolong the bilateral trade truce—known as the “Busan Agreement”—from its original November 10 deadline to January 10. The extension was disclosed during a Fox News interview following an unscheduled meeting with Chinese Vice Premier He Lifeng at the World Bank headquarters in Washington.
Background and Context
The Busan Agreement was forged at a summit in Busan, South Korea, in 2025 after President Donald Trump and President Xi Jinping struck a deal to roll back tit-for-tat tariffs, suspend certain rare-earth export curbs, and set a pause on new trade restrictions. The truce has been credited with stabilizing a relationship that had escalated to triple-digit tariffs earlier that year.
Key Figures
- Scott Bessent – U.S. Treasury Secretary, lead negotiator on the extension.
- He Lifeng – Chinese Vice Premier, counterpart in the talks.
- Jamieson Greer – U.S. Trade Representative, vocal on Chinese compliance.
Timeline
- September 20 – Marathon talks between Bessent and He in New York.
- September 23 – Bessent announces the two-month extension; the truce’s original deadline is November 10.
- September 24 – President Xi arrives in Washington for a two-day summit with President Trump.
- January 10 – New deadline for the extended truce (future date relative to the announcement).
Official Statements & Responses
Bessent emphasized that the United States remains noting that “the Chinese on Sunday came up with the idea of a bigger deal.”
He also signaled that discussions on a “Board of Trade” to identify $30 billion worth of non-strategic goods for tariff reductions are ongoing.
Both sides have agreed to launch a communications “hotline” for AI-related security incidents, though Chinese officials have offered only a limited acknowledgment of the proposal.
Criticism & Opposition
U.S. Trade Representative Jamieson Greer publicly criticized China for not fully honoring its rare-earth export commitments, describing the short extension as a “test of Chinese performance.”
Verbatim Quotes
- “We will extend what we call the ‘Busan Agreement’ — the economic détente between the two countries that was scheduled to end on Nov. 10 — that is going to be extended until Jan. 10,” — Scott Bessent, treasury secretary
- “The Chinese on Sunday came up with the idea of a bigger deal, and given that this could be a historic year where the leaders meet up to four times -- this being the second meeting, in Shenzhen and then in Miami -- we're open to the idea of just continuing the Busan arrangement or examining the bigger deal,” — Scott Bessent, treasury secretary
- “There’s some deliverables that have not been perfect on the Chinese side,” — Scott Bessent, treasury secretary
- “We want a shared vision of common goals and common threats,” — Scott Bessent, treasury secretary
What’s Next
U.S. and Chinese officials have indicated that they will reconvene in about two months on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen to continue AI-risk talks and assess progress on the trade truce. The outcome of that meeting is expected to shape whether the Busan Agreement will be further extended or replaced by a broader arrangement.