U.S. and China Extend 'Busan Trade Agreement' Until Jan. 10 Next Year, Avoiding Escalation Ahead of Summit

【Financial News New York = Correspondent Lee Byung-chul】  The United States and China have agreed to extend the trade agreement reached in Busan last year until Jan. 10 next year. With the U.S.-China trade truce, which was scheduled to end on Nov. 10, extended by another two months, the risk of a renewed escalation in the tariff war between the two countries has been temporarily pushed back. One of the two countries' biggest economic issues was settled ahead of the summit between U.S. President Donald Trump and Chinese President Xi Jinping.
U.S. Treasury Secretary Scott Bessent appeared on Fox News' 'Special Report' on the 23rd local time and announced that the United States and China had agreed to extend the so-called 'Busan Agreement.'
After meeting with Chinese Vice Premier He Lifeng in Washington, D.C., Bessent said, "Today, we met to see whether we could reach a larger agreement instead of continuing a series of small agreements. Today, we agreed to extend the agreement we call the 'Busan Agreement.'" The extension runs through Jan. 10 next year.
The agreement came out of additional negotiations between Bessent and He ahead of the summit. The two met in New York on the 20th before returning to the negotiating table in Washington, D.C., on the 23rd. Bessent had previously said that the talks would address either extending the existing trade truce or pursuing a broader trade agreement.
The United States and China entered a trade truce following a summit between Trump and Xi in Busan last October, agreeing to avoid escalation over tariffs, rare earths and other issues. Although the two countries have continued negotiations, concerns had grown that tariffs and export-control measures could be tightened again because the existing agreement was due to expire on Nov. 10.



[email protected] Lee Byung-chul, Correspondent Reporter