China has effectively extended its trade truce with the United States by two months, announcing the continued suspension of several trade measures ahead of the agreement’s scheduled expiry on Tuesday. The move comes as Chinese President Xi Jinping and US President Donald Trump are expected to meet at the APEC leaders’ summit in China next week. The extension follows their September meeting in Washington, where both countries proposed a $60-billion package of reciprocal tariff reductions, including approximately $17 billion worth of US agricultural products that China imported in 2024. However, the proposed agreement has yet to be finalised.
Under the extended arrangement, China will continue suspending an additional 24% tariff on US imports for two months from Tuesday, while retaining the existing 10% tariff. Beijing will also extend export-control waivers on certain critical minerals and related technologies until January 10, 2027. Restrictions affecting 11 US companies on its unreliable entities list and 16 companies on its export control list will remain suspended. Additionally, China will extend the suspension of special port fees on US-linked vessels, its shipping and shipbuilding supply chain security investigation, and sanctions on five US-linked units of South Korean shipbuilder Hanwha Ocean.
China’s decision is aimed at implementing the understandings reached between the two countries during the Washington summit and maintaining momentum in trade negotiations. However, Beijing cautioned that it would closely monitor subsequent US trade measures, particularly Washington’s plans to use Section 301 tariffs to replace certain tariffs imposed under the International Emergency Economic Powers Act, which were invalidated by judicial rulings. China said it would adjust its countermeasures depending on developments, highlighting that despite the temporary easing of trade tensions, significant differences remain between the world’s two largest economies.
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