China-US Trade Truce Extended as Beijing Seeks Progress in Talks

News Date: September 28, 2026

China has welcomed the extension of its trade truce with the United States, saying the agreement gives both sides more time to review existing arrangements and continue negotiations on major economic and trade issues.

China's Commerce Ministry said Monday that the two-month extension, which runs through January 10, would provide a relatively stable and predictable environment for businesses while allowing Beijing and Washington to continue discussions.

More Time for Trade Negotiations

The extension follows last week's summit between Chinese President Xi Jinping and US President Donald Trump in Washington. The two leaders agreed to maintain dialogue as their governments work through long-running disputes over tariffs, market access and other economic issues.

Under a trade council being established by the two countries, officials are expected to discuss possible reciprocal tariff reductions involving about $30 billion worth of goods. China said the move could help maintain more stable bilateral economic relations.

Agriculture and Market Access on the Agenda

The two governments also plan to establish an agriculture working group. Its first meeting is expected before the end of the year and will focus on market access and regulations affecting agricultural products.

Regular discussions will also examine investment opportunities and barriers, policy transparency and concerns raised by businesses on both sides.

Coal Trade and Other Areas

The latest agreement also includes plans for China to import US coal during 2027 and 2028. Beijing described US coal supplies as a useful addition to its domestic market and said the arrangement could provide economic benefits for American producers and workers.

Beyond traditional trade issues, Washington and Beijing are also expanding discussions on artificial intelligence. The two sides have agreed to establish a communication channel for AI-related incidents and plan another round of talks by the end of November.

China also said it would examine applications from foreign financial institutions, including those with US investment, to operate and establish branches in the Chinese market. Discussions on increasing direct flights between the two countries are also expected to continue.

Trade Tensions Remain

Despite the extension, several difficult issues remain unresolved between the world's two largest economies. The temporary truce provides additional time for negotiations, but it does not eliminate disagreements over tariffs, technology, investment and market access.

For businesses and investors, the extension offers greater short-term policy predictability while negotiations continue. The coming months will show whether the additional time can produce further agreements between Washington and Beijing.

Source: Reuters reporting, September 28, 2026.