The United States is open to extending the US-China trade truce past its November 10 expiration, or negotiating a broader deal, Treasury Secretary Scott Bessent said after a second round of talks with Chinese Vice Premier He Lifeng. The meeting was meant to resolve outstanding issues ahead of a Trump-Xi summit, with tariffs, rare earths and a proposed AI safety hotline all on the table.
Treasury Secretary Scott Bessent said the United States is open to extending the US-China trade truce that expires on November 10, or to negotiating a more expansive deal instead. He made the comment after his second meeting with Chinese Vice Premier He Lifeng, held to prepare for a summit between Presidents Trump and Xi.
Beijing floats a bigger deal
Bessent said Beijing raised the idea of a larger trade agreement during talks on Sunday, though China gave no details of its scope. According to Reuters: "We're fine with both, and we're going to do what's best for the American people." Trump and Xi are expected to continue the discussion at the White House on Thursday.
In a post on X, Bessent called the talks substantive and said Treasury was focused on securing commitments that protect American workers, farmers and businesses while advancing US economic and national security interests. A source familiar with the meetings described them as productive and said both sides remain actively engaged, with progress on a range of issues.
Truce covers tariffs and rare earths
The trade truce struck last year in Busan, South Korea, sharply lowered bilateral tariff rates after they had escalated to triple digits during tit-for-tat retaliation. China also agreed to restore the flow of rare earth magnets and other critical minerals it had restricted. But US officials said last week that China's delivery of rare earths has fallen short of expectations, and Trade Representative Jamieson Greer said Washington needs to keep pressure on Beijing to ensure compliance.
Beyond minerals, the two sides discussed lowering mutual tariffs on non-strategic goods and Chinese purchases of Boeing aircraft and agricultural products, building on a process first agreed when Trump and Xi met in Beijing in May.
AI hotline agreed, Beijing's response unclear
Bessent said the two sides also agreed to launch a communications hotline for notifying each other about AI safety incidents. However, China's response to the plan was unclear, with state news agency Xinhua acknowledging only that the two sides discussed AI. Analysts say expectations for AI cooperation remain low given the lack of mutual trust on the technology.
Source: Investing.com
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