China sees fresh momentum in US trade talks

China has welcomed the extension of its trade truce with the United States, saying the additional time could provide a more stable environment for further economic and trade discussions between the two countries.

China’s Commerce Ministry said the two-month extension would allow both sides to assess the implementation of existing arrangements and explore further measures to address bilateral trade issues. The truce has been extended until January 10.

The extension followed a summit between Chinese President Xi Jinping and US President Donald Trump in Washington last week. It was one of the key outcomes of their meeting as the two countries seek to manage trade tensions and maintain economic engagement.

Under the latest arrangement, China and the United States will discuss reciprocal tariff reductions covering around $30 billion worth of goods in each direction. The measures are aimed at improving trade conditions and supporting continued economic activity between the two markets.

China also plans to establish an agricultural working group with the United States. The group is expected to discuss market access and regulatory issues involving agricultural products before the end of the year.

Coal trade is another part of the agreement. China is expected to increase imports of US coal during 2027 and 2028. Beijing said such purchases would supplement its domestic coal market while providing more stable business for the US coal industry.

The two countries are also planning continued discussions on investment opportunities, financial services and policy transparency. China said it would review applications from foreign financial institutions, including US-backed firms, seeking to operate or establish branches in the country.

The latest talks also included cooperation on artificial intelligence. Both sides agreed to establish a communication channel for AI-related incidents and hold another dialogue before the end of November.

Officials will also continue discussions on increasing direct flights between China and the United States. The developments indicate that trade discussions are expanding into several areas of the broader economic relationship as Beijing and Washington seek to maintain dialogue after the latest summit.