China says US trade truce extension creates space to advance talks
SPY•China said a two-month extension of its trade truce with the United States, through January 10, creates space to evaluate their arrangement and advance discussions. The countries plan to discuss tariff cuts on $30 billion of products, and China agreed to import US coal in 2027 and 2028.
1. Trade talks and tariffs
China’s commerce ministry said the extension provides a “relatively stable and predictable policy environment” for companies and continued discussions. A bilateral trade council will discuss a reciprocal tariff cut on $30 billion of products, while the countries’ economic and trade teams will hold regular dialogues on investment opportunities, barriers and policy transparency.
2. Other areas of cooperation
The countries will establish an agriculture working group that plans to meet before year-end to discuss market access and regulation. China will import US coal in 2027 and 2028, and the two sides agreed to create an artificial intelligence incident communication channel and hold a follow-up dialogue by the end of November. China will also examine and approve US-backed financial firms to conduct business and open branches, while discussions on increasing direct flights will continue.
