Summary
- Daniel Russel of the Asia Society Policy Institute said the two leaders may be presenting a more cooperative relationship, but Washington and Beijing remain engaged in intense strategic competition.
- US Trade Representative Jamieson Greer said Washington considers such extensions compliance periods and expects Beijing to meet its commitments.
- He said Washington and Beijing have also identified certain goods that could receive preferential treatment in future trade.
WASHINGTON: The United States and China have extended their fragile trade truce, giving both sides more time to ease economic tensions. However, analysts say major disputes over technology, trade, Taiwan, defence, rare earth minerals and industrial policy remain unresolved.
US President Donald Trump and Chinese President Xi Jinping held a high-profile summit on Friday and agreed to maintain dialogue. Trump also confirmed plans for two more meetings with Xi before the end of the year.
Daniel Russel of the Asia Society Policy Institute said the two leaders may be presenting a more cooperative relationship, but Washington and Beijing remain engaged in intense strategic competition.
Daniel Kritenbrink, a former US official now working with The Asia Group, said both governments want stability in their relationship at least until the end of the year. However, he stressed that the truce would need further concrete results to continue over the longer term.
The two countries agreed to the initial trade truce last year in South Korea after a sharp tariff dispute pushed duties above 100% on some goods. Under the agreement, China committed to increasing purchases of US agricultural products, including soybeans, while also suspending restrictions on rare earth exports for one year.
The truce was originally scheduled to expire in November, but the two sides have now agreed to extend it until January 10, according to US Treasury Secretary Scott Bessent.
US Trade Representative Jamieson Greer said Washington considers such extensions compliance periods and expects Beijing to meet its commitments.
Mary Lovely of the Peterson Institute for International Economics said the shorter extension reflects US concerns over the supply of rare earth magnets. She added that it remains uncertain how effectively the threat of higher tariffs can influence China.
Meanwhile, Greer said both countries have made progress on several economic issues and will release further details on Monday. He said Washington and Beijing have also identified certain goods that could receive preferential treatment in future trade.
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