In a brief appearance on Fox News’ “Special Report,” Treasury Secretary Scott Bessent confirmed that the United States and China have agreed to extend the bilateral trade truce known as the Busan agreement. The original agreement, negotiated by President Donald Trump and President Xi Jinping in October 2025, was set to expire on Nov. 10. Bessent said the two sides will now keep the truce in place until Jan. 10, providing additional breathing room for both economies.
Why the Extension Matters
The Busan agreement has been a cornerstone of the administration’s effort to ease economic tension with China while protecting American jobs and families. By extending the truce, the Trump administration demonstrates its commitment to responsible trade policy that avoids the harmful effects of a full‑scale trade war. The extension also signals to American businesses that the government remains focused on stability and predictability in international markets.
Administration’s Rationale
“We have agreed today that we will extend what we call the Busan agreement, the economic détente between the two countries that was scheduled to end on Nov. 10, and we are moving that date to Jan. 10 to give us more time to see what we can do on the economic front,” Bessent told the program. He emphasized that the extra time will allow U.S. officials to explore further opportunities for cooperation, especially in high‑technology sectors where the United States maintains a clear lead.
Broader Context: Iran Sanctions
While discussing the Busan extension, Bessent also outlined the Treasury’s ongoing pressure campaign against Iran, now in its seventh month. He warned that the Iranian regime is a “cornered animal” and described three possible ways the conflict could end: internal power struggles, a popular uprising, or Tehran returning to the negotiating table. The Treasury’s Operation Economic Outcast, launched in August, continues to target Iranian assets and financial networks, a campaign Bessent described as “never seen before” in its scope.
AI Cooperation with China
In the same interview, Bessent addressed recent talks with China’s Vice Premier He Lifeng, proposing an AI “notification mechanism” that would allow both nations to alert each other about AI‑related safety incidents. “They’re very eager to engage with us on AI because the U.S. is substantially in the lead, China’s behind us,” Bessent said, underscoring the administration’s confidence in American technological leadership.
What This Means for American Families
Extending the Busan agreement helps protect American consumers from higher prices that could result from renewed tariffs. It also supports U.S. manufacturers who rely on stable supply chains. By keeping the trade environment calm, the Trump administration continues to safeguard the economic well‑being of traditional families across the nation.
Looking Ahead
The administration plans to use the additional weeks to assess the impact of the truce and to explore further steps that could deepen economic ties without compromising American interests. As the Treasury continues its robust sanctions effort against Iran, the dual focus on trade stability with China and pressure on hostile regimes reflects a comprehensive strategy aimed at securing prosperity and safety for the United States.
Original reporting: Fox News (HLL/CB) — read the source article.
