China Says US Trade Truce Extension Creates Space to Advance Talks

China said Monday that it would extend a trade truce with the United States until Jan. 10 would allow both sides to review existing arrangements and move forward in negotiations on economic and trade issues.

Reuters reported that China’s Commerce Ministry said the extension would offer a “relatively stable and predictable policy environment” for cooperation between companies and continued talks.

The extension came after last week’s summit between US President Donald Trump and Chinese President Xi Jinping. Reuters reported that President Donald Trump was in Washington, where the two sides reached several agreements aimed at easing trade tensions.

China and the United States also agreed to set up a trade council to discuss bilateral economic issues. One of its first tasks will be to talk about reciprocal tariff cuts on about US$30 billion worth of products from each country, China’s Commerce Ministry said.

The two countries also agreed to set up an agriculture working group and continue discussions on increasing direct flights. China said it would buy US goods in 2027 and 2028.

Beijing and Washington will also keep in touch on incidents related to artificial intelligence and hold a follow-up dialogue by the end of November, Reuters reported.

The truce extension is meant to give companies more stability as the two countries keep negotiating broader trade issues.