The United States has proposed a three-to-six-month extension of the current trade truce with China. The existing agreement, established by the 2025 Busan deal, is set to expire on November 10, leaving negotiators approximately seven weeks to reach a new arrangement.
Preparatory discussions held on September 20 between US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Chinese Vice Premier He Lifeng did not result in an immediate agreement. The parties remain divided on technology restrictions, supply-chain security, and rare-earth mineral exports.
Current assessments indicate that China has fulfilled approximately two-thirds of its commitments regarding rare-earth mineral exports. Conversely, Beijing has successfully met its annual target of purchasing 25 million metric tons of soybeans, a commitment extending through 2028.
Negotiators are considering a reciprocal tariff reduction framework that would cover $30 billion in goods for each side. This proposal is intended to serve as a potential incentive for both governments to agree to an extension of the trade truce.
The preparatory talks are intended to prepare the ground for a summit between President Trump and President Xi, scheduled for September 24. Officials aim to define broad parameters for future cooperation rather than finalize a comprehensive deal at this stage.
