Team Trump Announces Trade Truce With China As Xi Begins Rare US Visit

US President Donald Trump's Treasury Secretary Scott Bessent announced that Washington and Beijing have agreed to extend their trade truce shortly after Chinese leader Xi Jinping arrived in Washington for a three-day visit. But the truce, which was set to lapse in November, has been extended for just two months, setting up another deadline for early next year.

Under it, the two superpowers agreed to scale back tariffs and refrain from imposing new trade restrictions, Bessent said during a Fox News Channel interview as Trump, in a rare planeside greeting, welcomed Xi at Joint Base Andrews just outside Washington.

"I don't know whether a bigger deal can be done. I don't know whether we will just roll the current deal," Bessent said, noting the extension till January 10 could give both nations more time to discuss their issues at upcoming international summits in China in November and Florida in December.

Bessent said he and his Chinese counterpart, Vice Premier He Lifeng, met at the World Bank in Washington earlier Wednesday, where they agreed to extend the truce. The Treasury Secretary also teased further announcements from Xi's visit.

"We're going to see probably some announcements of maybe financial services, agriculture purchases," he said. "There's quite a bit going on here."

Trade is one of the biggest flashpoints between Washington and Beijing, apart from artificial intelligence, Trump's war with Iran, and China's designs on Taiwan. Last October, Trump and Xi, during a meeting in Busan, South Korea, rolled back restrictions on critical minerals and high-tech exports that had threatened to cripple global supply chains. Under the temporary deal, both sides also extended a pause on their triple-digit tariffs, which was set to expire November 10.

Xi Jinping's US Visit

Meanwhile, during Xi's two-day stay in Washington, he's set to meet Trump at the White House, followed by a state dinner. The visit is Xi's first to the US in over a decade. It is expected to be far more about pomp than substance, starting with Trump's decision to greet Xi as he landed, rather than waiting for him to drive up to the White House.

A 100-foot (30-meter) long red carpet was unfurled at the bottom of the staircase placed at the door of Xi's plane. A 21-person honour guard was arrayed on the sides of the carpet, and Trump and First Lady Melania Trump stood near a staircase on the side of the plane, where they greeted Xi and his wife, Peng Liyuan, with handshakes.

The welcome ceremony also included a flyover by two B-1 bombers, platoons from each military service, and a presentation of the flags and anthems of both countries. 

"I think they appreciate it, tremendous people," Trump told reporters after he returned to the White House.

Beyond using the visit to try to keep "strategic stability" between the two countries, Trump has lavished praise on Xi as a "great leader" and described a warm relationship with the man he has called a friend. That is all while he has given Xi a pass on many issues.

Meanwhile, in his statement marking his arrival in the US, China's leader wrote that Beijing and Washington "should be partners, not rivals. Achieving the great rejuvenation of the Chinese nation and making America great again can go hand in hand, and the two countries can contribute to each other's success, thereby benefiting the wider world."