US Open to Extending China Trade Truce or Bigger Deal, Bessent Says
The United States is officially open to extending the bilateral trade truce with China beyond its November 10 expiration date or pursuing a more expansive trade deal, according to US Treasury Secretary Scott Bessent. Speaking on September 23, following high-level discussions in Washington, Bessent revealed that Beijing floated the concept of a larger deal during recent preparatory talks.
This diplomatic maneuvering comes as both economic superpowers gear up for a presidential summit at the White House.
Behind the Diplomatic Curtain in Washington and Shenzhen
The recent diplomatic push follows intense negotiations led by Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng, and US Trade Representative Jamieson Greer. The officials convened at World Bank headquarters in Washington on Wednesday, September 23, to address what Bessent termed “unfinished business.” These sessions directly prepare the groundwork for an upcoming White House meeting between US President Donald Trump and Chinese President Xi Jinping.
According to Bessent, the diplomatic calendar between the two nations remains active this year. Leaders are on track to meet up to four times, with previous stops including Shenzhen and Miami. “The Chinese on Sunday came up with the idea of a bigger deal, and given that this could be a historic year where the leaders meet up to four times… we’re open to the idea of just continuing the Busan arrangement or examining the bigger deal,” Bessent told reporters. He emphasized that the administration remains flexible, stating, “We’re fine with both, and we’re going to do what’s best for the American people.”
In a public statement on X, Bessent characterized the discussions as substantive. He noted that the Treasury Department remains focused on securing “meaningful commitments that protect American workers, farmers and businesses while advancing U.S. economic and national security interests.” A source familiar with the proceedings similarly described the meetings as productive and constructive, noting that both sides continue to make progress across a range of important issues.
Unpacking the November 10 Truce and Critical Minerals Compliance
At the heart of the current diplomatic talks is the trade truce struck last year in Busan, South Korea. That agreement slashed bilateral tariff rates that had previously escalated to triple digits following a cycle of retaliatory tariff hikes. Furthermore, the Busan arrangement secured a resumption in the flow of rare earth magnets and other critical minerals that China had severely restricted.
However, implementation has faced friction. US officials reported that China’s delivery of rare earth minerals “has not been up to par,” placing pressure on American negotiators to demand strict compliance. US Trade Representative Jamieson Greer, speaking with Bloomberg TV, underscored that while discussions regarding a truce extension will continue, maintaining pressure on Beijing remains essential to ensure compliance on critical minerals agreements.
“My expectation is we’ll continue talking and I think both sides want it,” Greer said regarding an extension of the November 10 deadline. Beyond tariffs and minerals, ongoing talks also incorporate previously tabled proposals from the May presidential meeting in Beijing. These include lowering mutual tariffs on some non-strategic goods and facilitating renewed Chinese purchases of American agricultural products and Boeing aircraft.
Navigating the Fragile Future of Artificial Intelligence Cooperation
Technology policy continues to run parallel to traditional trade negotiations, though cooperation remains fraught with skepticism. During their Sunday meeting in New York, Bessent, Greer, and He attempted to lay the groundwork for artificial intelligence agreements. The primary tangible outcome was an agreement to launch a communication “hotline” designed to notify both governments about AI safety incidents.
Beijing’s official response to the proposed AI hotline has been notably muted. State news agency Xinhua acknowledged only that the two sides discussed artificial intelligence without confirming operational details of the hotline itself. US-China analysts point out that expectations for bilateral tech cooperation remain low. Mutual trust regarding advanced technology is lacking, and neither side has expressed serious interest in slowing down development.
President Trump has consistently maintained that his administration will not “stifle” domestic artificial intelligence growth. Instead, Washington aims to maintain the US lead over China in what the administration now classifies as “super intelligence.”
The Stakes Ahead for Global Markets
As the November 10 expiration date approaches, international markets watch to see whether Washington and Beijing will settle for a simple rollover of the Busan truce or forge a bigger deal. The strategic push for reciprocity and fairness championed by the Treasury Department sets a high bar for any final text.
How do you view the administration’s dual approach to trade and technology? Will a potential “bigger deal” successfully resolve deep-seated supply chain vulnerabilities, or should markets brace for renewed volatility? Share your perspective in the comments below.
