US, China agree to extend trade truce for another 2 months

On the economic front, US Treasury Secretary Scott Bessent has announced a two-month extension of trade truce with China, pushing the expiration date from November 10 to January 10, 2027, to allow more time to work on a potentially bigger deal.

Speaking to Fox News on Wednesday, Bessent says the two countries have mutually consented to prolonging their economic detente sealed in Busan, South Korea earlier this year for another two months. It is now set to expire on January 10 as both sides seek to avert a renewed clash.

People familiar with the plans say the latest trade consultations spearheaded by Bessent and Chinese Vice Premier He Lifeng in New York could yield deals to lower some tariffs, combat drug trafficking and expand military-to-military dialogue.

When asked whether an agreement could be struck by the new deadline, Bessent says everything is still on hold.

The treasury chief notes they've been prodding Beijing to "be a bit more fulsome" to ensure compliance with its commitments under the prevailing pacts, including the pledge to buy US agricultural goods.

American officials last week alleged China was also lagging in the delivery of rare earths.

Bessent states in the interview that Thursday's Trump-Xi summit, the second between the two heads of state this year, will potentially see some announcements on the nations' objective of rolling back duties on 30 billion US dollars worth of non-critical goods, inclusive of financial services and farm purchases.

Meanwhile on the sidelines of the United Nations General Assembly, US Secretary of State Marco Rubio defends President Donald Trump's high-stakes meeting with President Xi Jinping and slams domestic pushback.

Rubio shoots back against Republican Sen. Roger Wicker's criticism of the "lavish welcome" of the Chinese leader, insisting it's responsible statecraft to maintain top-level interactions at the highest levels despite ongoing friction.

He says: "The United States and China and the two largest economies in the world. The United States and China, are probably the two most powerful militaries in the world. The relationship between the United States and China will define the 21st century, what happens in that relationship. The idea that we would not interact with them at the highest levels is irresponsible, it's outrageous. We have to."

{DANNI ZHOU TVB NEWS}

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