China extends US trade truce by two months

China extends US trade truce by two months

China has effectively extended its trade truce with the United States for another two months, announcing a further suspension of several trade restrictions ahead of an expected meeting between the two countries’ leaders next week.

The existing agreement was due to expire on Tuesday. Chinese President Xi Jinping and US President Donald Trump are expected to meet for the third time this year on the sidelines of the APEC leaders’ summit in China.

Following their September meeting in Washington, both countries proposed a $60 billion package of reciprocal tariff reductions. The proposal included around $17 billion worth of US agricultural products that China purchased in 2024. However, the two sides have yet to finalise the arrangement.

US Treasury Secretary Scott Bessent said in September that extending the truce would give Washington and Beijing additional time to explore opportunities for economic cooperation.

Under the latest decision, China will continue suspending an additional 24 per cent tariff on US imports for another two months, starting at 1:01pm on Tuesday (0501 GMT). However, the existing 10 per cent tariff will remain in place, according to China’s State Council.

Beijing will also extend exemptions from export controls on certain critical minerals and related technologies until January 10, 2027. The Commerce Ministry said restrictions targeting 11 US companies on China’s unreliable entities list and 16 others on its export control list would also remain suspended until the same date.

Meanwhile, China’s Transport Ministry announced an extension of the suspension of special port fees on US-linked vessels until January 10, 2027. The country will also keep its investigation into shipping and shipbuilding supply chain security on hold.

In another move, the Commerce Ministry said China would extend the suspension of sanctions against five US-linked subsidiaries of South Korea’s Hanwha Ocean for another two months.