China Says US Trade Truce Extension Creates Space for More Talks

Post by : Saif

China says the extension of its trade truce with the United States will give both sides more time to review existing agreements and discuss further steps on trade and economic issues.

China's Commerce Ministry said the arrangement has been extended until January 10, 2027. Beijing said the extension would provide a relatively stable and predictable policy environment for companies while negotiations continue.

The extension followed the latest meeting between Chinese President Xi Jinping and US President Donald Trump in Washington. Both countries have been working to reduce trade tensions and establish mechanisms for continued economic discussions.

$30 Billion Tariff Reduction Framework

One of the key areas under discussion is a reciprocal tariff reduction covering about $30 billion of goods from each country.

China's Commerce Ministry said the two sides agreed to lower tariffs on products worth around $30 billion on both sides, with more than 90% of the listed products set to receive most-favoured-nation tariff treatment after domestic procedures are completed.

For US goods entering China, the list includes agricultural products, personal care products, medical equipment and coal. The United States has also identified Chinese consumer products such as toys, household appliances, children's products and other goods for tariff reductions.

The arrangement is intended to support bilateral trade and create better conditions for businesses on both sides.

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Agriculture Becomes a Key Focus

China and the US have also agreed to create an agriculture working group under the new trade council.

The group is expected to hold its first meeting before the end of 2026 and discuss market access, regulations and other concerns affecting agricultural trade.

The US has highlighted China's planned purchases of American agricultural products as part of the broader trade arrangement. The two countries are also discussing tariff treatment for agricultural goods and other products.

China to Import More US Coal

Coal is another important part of the latest trade discussions.

The United States says China will import at least 10 million metric tons of US coal in both 2027 and 2028. China's Commerce Ministry said US coal imports would supplement its domestic coal market while supporting income and employment in the American coal industry.

Oil and liquefied natural gas were not included in the listed tariff reduction categories.

AI, Investment and Direct Flights

The two countries are also expanding talks beyond traditional goods and tariffs.

China and the US have agreed to maintain communication on artificial intelligence issues, including a channel for discussing incidents. A follow-up AI dialogue is expected by the end of November.

China will also examine applications from foreign financial services companies, including US-backed institutions, seeking to operate or open branches in the country.

Beijing and Washington will continue discussions on increasing direct passenger flights between the two countries, according to China's Commerce Ministry.

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