The U.S. and China Have Extended Their Trade Truce – Bloomberg

The United States and China have agreed to a short-term extension of the trade truce until early 2027, which underscores the fragility of relations between the two countries and the lack of trust. U.S. Trade Representative Jamison Greer stated that Washington had hoped for a three- to six-month extension of the agreement, while Beijing sought to lock in the terms for the entire duration of Donald Trump’s presidency.

The U.S. accused China of failing to fulfill its commitments to ensure a stable supply of rare-earth metals. At the same time, Beijing views control over these elements—which are critical to the defense industry and high-tech manufacturing—as a way to deter the U.S. from imposing new high tariffs.

The announcement of the truce extension reduced the risk of immediate supply disruptions, leading to a drop in stock prices for companies developing alternatives to Chinese rare earth metals. In particular, shares of Japan’s Toyo Engineering Corp. fell by about 9%, and those of Australia’s Lynas Rare Earths Ltd. — by up to 5%; the Chinese CSI 300 index lost 1.7%; and the Asian MSCI index fell 0.8%.

Source: Bloomberg.

Chinese President Xi Jinping visited the U.S. for the first time since 2023. During this trip, he held his eighth face-to-face meeting with U.S. President Donald Trump.

U.S. President Donald Trump appeared at the meeting with Chinese President Xi Jinping wearing a warm coat and leather gloves, which caught the attention of social media users. The meeting took place when the air temperature was around 64 °F (+18 °C).

The ceremony welcoming Chinese leader Xi Jinping at Andrews Air Force Base near Washington resembled the reception given to Russian President Vladimir Putin during his visit to the U.S. in August 2025.