Date: September 28, 2026
Reporter: Emilly Jordan
China said Monday that a two-month extension of its trade truce with the United States would give both sides more time to evaluate existing economic arrangements and work toward advancing negotiations, following last week's summit between Chinese President Xi Jinping and U.S. President Donald Trump.
China's Commerce Ministry said the extension, which runs through January 10, would provide a “relatively stable and predictable policy environment” for businesses and allow the two countries to continue discussions on trade and economic issues.
The extension was among the main outcomes of the second meeting this year between Xi and Trump, held in Washington during Xi's three-day visit to the United States.
As part of the arrangements reached during the summit, the two countries agreed to establish a trade council. One of its first tasks will be to discuss reciprocal tariff reductions covering about $30 billion worth of goods from each country.
U.S. Trade Representative Jamieson Greer said the proposed measures would provide improved market access for U.S. exporters. A White House list showed that China plans to reduce tariffs on a range of American agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals. Soybeans were not included on the list.
China also plans to consider lower tariffs on U.S. fish and seafood, logs and wood products, cosmetics and medical devices.
In return, the United States has listed a range of Chinese consumer and household products for reciprocal tariff reductions. These include small appliances such as coffee makers and toasters, tableware, blankets and bed linens, as well as toys, artificial flowers, holiday decorations and children's car seats.
The tariff arrangements cover $60 billion in two-way trade, with each side identifying approximately $30 billion of non-sensitive goods for more favourable treatment.
China's Commerce Ministry said the two countries would also establish an agriculture working group under the new trade council. The group is expected to begin discussions before the end of 2026 on agricultural market access and regulatory issues.
The summit also produced an agreement for China to import 10 million metric tons of U.S. coal annually in 2027 and 2028. The White House said that volume would be equivalent to roughly 2% of China's annual coal imports. China's Commerce Ministry described U.S. coal as a useful supplement to the country's domestic coal supply and said the purchases would provide economic and employment benefits to the U.S. coal industry.
Oil and liquefied natural gas were not included in the coal agreement.
Artificial intelligence was another area in which the two governments agreed to continue cooperation. Washington and Beijing will establish a communication channel for AI-related incidents and hold another dialogue by the end of November.
The countries also agreed to continue discussions on increasing direct flights between the United States and China. China said it would examine and approve foreign financial services institutions, including those backed by U.S. capital, to conduct business and open branches in the country.
The latest measures follow months of negotiations and tariff disputes between the world's two largest economies. The trade truce extension does not resolve all outstanding disagreements but gives companies additional time to operate under a more predictable tariff environment while officials continue negotiations.
China's government said the extension would allow both sides to assess implementation of their existing arrangements and consider how to make further progress on economic and trade issues.
The two governments are therefore expected to continue working through the newly established trade mechanisms while monitoring the implementation of the tariff reductions and other commitments reached during the Trump-Xi summit.
For businesses on both sides, the immediate significance of the extension is that the tariff truce will remain in place until January 10, giving companies additional time to adjust to the evolving trade relationship while Beijing and Washington continue negotiations on broader economic issues.