Beijing, September 28, 2026: China and the United States have agreed to extend their existing trade truce until January 10, 2027, giving both sides additional time to review their economic arrangements and continue negotiations on unresolved trade issues.

The extension was announced after Chinese President Xi Jinping and US President Donald Trump held their second summit of the year in Washington last week. China’s Commerce Ministry said the extended arrangement would provide businesses with a relatively stable and predictable environment while the two governments continue discussions.

$30 Billion Tariff Reduction Framework

One of the key elements of the latest agreement is a proposed reciprocal tariff reduction covering approximately $30 billion worth of goods traded between the two countries.

China said tariffs on about 90% of the products included in the framework would be reduced to most-favoured-nation rates. Implementation will follow the completion of domestic legal procedures in both countries.

New Trade Council Planned

Beijing and Washington have also agreed to establish a bilateral trade council. The body is expected to provide a regular platform for discussions about trade barriers, investment opportunities and other economic issues.

An agricultural working group will also be created to discuss market access and regulatory matters involving agricultural products. Its first meeting is expected before the end of 2026.

Cooperation on Coal and Agriculture

The agreement includes provisions related to US coal exports to China. China is expected to import 10 million metric tons of US coal annually during 2027 and 2028, according to details released following the summit.

The two sides are also continuing discussions involving agricultural products, with tariff adjustments covering several categories of US farm exports.

AI Communication Channel

Trade was not the only area covered by the latest discussions.

China and the US agreed to establish a communication channel for artificial-intelligence-related incidents and continue an AI dialogue. A follow-up discussion is expected before the end of November.

Both governments are also continuing discussions concerning financial services and increasing direct passenger flights between the two countries.

What Comes Next?

The extended trade truce does not represent a final settlement of all China-US economic disputes. Instead, it provides additional time for both governments to implement existing arrangements and negotiate further issues.

China’s Commerce Ministry said continued discussions could help create more predictable conditions for companies operating in both markets.

The next several months will therefore focus on implementing the tariff framework, expanding trade discussions and addressing remaining differences before the January 2027 deadline.