‘Hostile, but hooked’: What’s behind the US-China trade truce extension?
Summary
Chinese President Xi Jinping visited the US, and the two countries agreed to extend a trade truce that paused some tariffs and delayed rare-earth metal export bans. Despite the truce, the US and China continue to compete on many issues, including technology, Taiwan, and sanctions.Key Facts
- Xi Jinping’s visit to Washington DC was the first by a Chinese leader in 11 years.
- President Trump and Xi extended a trade truce originally agreed upon in October 2025.
- The truce paused tariffs that had reached up to 150% and delayed China’s export ban on rare-earth metals until January 10.
- China agreed to buy more soybeans from the US as part of the trade agreement.
- The US imposed tariffs after accusing China of supporting fentanyl trafficking into the US.
- The US and China still compete over artificial intelligence, Taiwan, and sanctions related to the Iran war.
- Analysts say the trade truce is temporary and mainly for political reasons ahead of the US midterm elections.
- The extension does not indicate a permanent trade deal between the two countries.
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