Donald Trump and Xi Jinping extended their trade truce to January 10, 2027, but left rare earth shortfalls, agricultural purchases and aircraft orders unresolved. Taiwan and Iran remain sticking points, and neither leader signaled any slowdown in the AI race.
Xi Jinping's three-day visit to counterpart Donald Trump produced a two-month extension of the U.S.-China trade truce rather than a breakthrough. The truce now runs to January 10, 2027, short of the three- to six-month window U.S. Trade Representative Jamieson Greer had floated days earlier.
Trade truce extended, gaps remain
Treasury Secretary Scott Bessent said the extension would give Washington and Beijing "more time to see what we can do on the economic front." He added that China is meeting its pledge to buy 25 million tons of soybeans but is lagging on its promise to purchase $17 billion in other agricultural goods.
A source close to the U.S. Treasury told OilPrice.com that rare-earth deliveries from China are running about 25% below the average volume seen before March's export controls, even as shipments to other buyers have risen. The same source said volumes to the EU are up 21%, to South Korea 23% and to India 44%. China's promised aircraft purchases have also shrunk, with the 500 planes American manufacturers sought downgraded to 200, with no word on plane types or delivery schedules.
Taiwan and Iran stay unresolved
Trump's team made no mention of starting deliveries under the $11 billion Taiwan arms package he approved in December. Xi publicly said he hopes the U.S. will handle the Taiwan question with prudence, while a separate EU source said Beijing is privately pushing Washington to also oppose Taiwan independence.
On Iran, Xi said he supports a return to the interim agreement announced in June, but Beijing continues to decline U.S. requests to pressure Tehran by threatening to halt oil imports. A source close to Iran's Petroleum Ministry told OilPrice.com that Tehran expects a full resumption of U.S. military hostilities after the country's mid-term elections conclude on November 3.
Neither side slows the AI race
On artificial intelligence, Trump said he opposes global frameworks or heavy-handed regulation, writing on Truth Social that he wants to leave AI policy exactly where it stands. Xi said the AI competition should be a healthy race of catching up with one another rather than a wrestle, adding that both countries must find a way to coexist in peace to avoid cross-border AI incidents.
Source: Oilprice.com
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