US and China extend Busan trade truce to January 10 as Xi arrives for Trump summit

The extension removes a near-term cliff risk for Asian assets, with the truce otherwise due to expire in November, and should underpin the yuan and China-sensitive currencies such as the Australian dollar. Because an extension was widely signposted, the bigger swing factor is whether the summit produces the broader deal Beijing floated or simply a rollover. Rare earth flows are the key pressure point to watch, given the US view that China has not fully honoured its commitments. The short, two-month horizon means tariff risk returns early in the new year, limiting how much risk premium markets can price out now. --- Washington and Beijing have bought themselves two more months of tariff peace, the easy part, leaving the summit to show whether the Busan truce can grow into something bigger than a rollover. Summary: The US and China agreed on Wednesday to extend the Busan trade agreement until January 10, Treasury Secretary Bessent said after meeting Vice Premier He Lifeng Bessent said the talks explored a bigger deal rather than a series of smaller measures; China first proposed a broader agreement at talks on Sunday The Busan truce, agreed by Trump and Xi in October last year, was due to expire on November 10 Under Busan, the US halved its fentanyl-related tariff to 10%, while China suspended rare earth export curbs and committed to large soybean purchases Washington says China has not fully honoured its rare earth commitments Xi has arrived in the US for a White House summit with Trump, with the leaders possibly meeting up to four times this year The United States and China have agreed to extend the trade truce struck in Busan, South Korea, until January 10, US Treasury Secretary Scott Bessent said on Fox News on Wednesday, following talks with Chinese Vice Premier He Lifeng. The announcement came as Chinese President Xi Jinping arrived in the US for a state visit and summit with President Donald Trump.Bessent said the two sides had met to explore whether a larger a