US Says China Trade Truce Extended As Trump Welcomes Xi: Deal Extended Through January 10

Washington, September 25, 2026 — US President Donald Trump welcomed Chinese President Xi Jinping to Washington on Wednesday for a three-day visit that will test relations between the superpowers as tensions simmer over trade, technology, Taiwan and Iran. Treasury Secretary Scott Bessent said they had reached a deal on an extension of the trade truce through January 10, 2027.

🇺🇸 Xi's first trip to the US in nearly three years was not expected to deliver major breakthroughs — but Washington and Beijing extended their 11-month trade truce, which had been set to expire on November 10.

💬 Xi's Statement

💬 “China and the United States should be partners, not rivals,” Xi said in a written statement released by the Chinese embassy that made no reference to a trade deal.

📊 Positive Signals On Trade

A trade deal, even a limited one, could soothe global markets shaken by a 2025 tariff war that led to triple-digit levies between the world's two biggest economies. The truce extension provides temporary relief for global trade — including for countries like Bangladesh that depend on both US and Chinese markets.

🌏 Deep Differences Remain

Despite the truce extension, deep differences remain between the two countries on:

• 📋 Export controls on rare-earth minerals and computer chips
• 📋 China's ties with Iran — particularly relevant given the ongoing US-Iran war
• 📋 US support for Taiwan
• 📋 Technology transfer restrictions
• 📋 Market access barriers in both directions

💼 Implications For Bangladesh

The US-China trade truce extension has several implications for Bangladesh:

• 🇧🇩 Supply chain stability — Bangladesh imports $18.19 billion from China, including RMG inputs. A trade war disruption would increase costs.
• 🇧🇩 Export market stability — Bangladesh exports $8.69 billion to the US. US-China tensions could affect demand.
• 🇧🇩 ART compatibility — Bangladesh's Agreement on Reciprocal Trade with the US bars new FTAs with non-market economies (including China). The truce extension reduces pressure on this constraint.
• 🇧🇩 Investment flows — US-China tensions can redirect FDI flows, potentially benefiting Bangladesh as an alternative manufacturing base.

🏛 The State Visit Protocol

The welcome marked the first time in 11 years that a US president has greeted a foreign leader at Joint Base Andrews, according to C-SPAN. The last such reception was for Pope Francis in 2015 during Barack Obama's presidency.

At the arrival ceremony, the leaders and their wives shook hands, spoke for a few minutes and stood for pictures as a military band played, cannons blasted and a B-1 military bomber flew overhead.

📜 Looking Ahead

The meeting comes at a difficult moment for Trump, who faces public discontent with his war on Iran. Xi, while also facing challenges at home, arrives in a [position of relative strength]. The trade truce extension provides a temporary floor under global trade uncertainty — but the fundamental US-China strategic competition will continue to shape the global economic landscape for years to come.

For Bangladesh, the truce extension is broadly positive — reducing the risk of supply chain disruptions and maintaining stable export market conditions in both the US and China. The coming months will reveal whether the truce can hold beyond January 10, or whether renewed tariff escalations will once again roil global trade.