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US-China summit extends Kuala Lumpur trade truce by two months
The truce now runs until Jan. 10, but the short extension highlights the gap between each side’s stated demands on tariffs and other restrictive measures.
A recent US-China summit produced a limited trade outcome, extending the Kuala Lumpur trade truce by two months, with the pause now set to expire on January 10 next year, according to SCMP Economy.
The outlet said the extension was intended to reduce fears of immediate tariff escalation and was framed as evidence that head-of-state diplomacy can slow a broader confrontation.
SCMP Economy reported that China’s position remains that punitive tariffs and restrictive measures imposed since 2018 should be removed, while China responded to the truce extension by pointing to the need for time to review implementation and maintain stable, predictable policy conditions for businesses.
The outlet also said the US Treasury Secretary Scott Bessent characterized the two-month window differently, describing it as a compliance review while the dispute over tariffs and restrictions continues.