Treasury Secretary Scott Bessent said Wednesday that the US and China agreed to extend their trade truce, the Busan Agreement, by two months to Jan. 10, giving both sides more time to work toward a potentially bigger trade deal.

'We Had a Very Productive Meeting'

Bessent told Fox News in an interview that he and Chinese Vice Premier He Lifeng met for about 12 hours on Sunday but still had "unfinished business," adding that they met again on Wednesday to see "if we could do a bigger deal as opposed to just a series of smaller things."

The original agreement, struck by President Donald Trump and Chinese President Xi Jinping last year, had sharply lowered tariffs that had risen into the triple digits amid retaliatory trade measures and restored China's supply of rare earth magnets and critical minerals.

When asked why the extension was two months rather than the two years that China reportedly wanted, Bessent said, "I don't know whether a bigger deal can be done," adding the US wants to see China follow through more fully on existing commitments in the coming months.

Trade Terms Still in Play

Bessent pointed to a possible "30 by 30" arrangement in which both countries could remove tariffs on $30 billion worth of non-critical goods each, along with potential announcements on financial services and agricultural purchases.

He said China has bought 25 million tons of soybeans as promised, but remains behind on roughly $17 billion in other agricultural commitments, adding the US is "encouraging them to pick those up."

In a post on X, the Treasury Secretary said that Wednesday's talks "continued to focus on securing meaningful commitments that protect American workers, farmers, and businesses while advancing U.S. economic and national security interests."

Xi arrived in Washington this week without the Chinese business delegation Beijing had sought to bring, Reuters reported.

More Meetings on the Calendar

The two leaders could hold a historic four in-person meetings this year alone, Bessent said.

That includes Trump's earlier visit to Beijing, this week's Washington summit, a meeting in Shenzhen and a fourth meeting in November at the G20.

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