China’s Commerce Ministry said on Monday that the United States (US) and Chinese officials confirmed that the bilateral trade truce has been extended by two months, moving the expiration date from November 10 January 10, 2027. 

Key quotes

Importing US coal complements domestic market, offers stable economic returns and jobs for US industry. 

We look forward to expanding China-US collaboration in coal sector. 

China and US agree to form agricultural working group. 

Both parties agree to hold first agriculture working group meeting before end of 2026. 

China will review and approve applications from financial service institutions worldwide, including those with US capital, to operate and open branches. 

China expects US to offer fair, transparent, and stable policy environment for Chinese financial institutions. 

China, US agree to set up communication channel for AI incidents. 

Both parties agreed to maintain dialogue on boosting China-US flights and related issues.

Trade ceasefire with US to be extended to January 2027. 

Trade truce offers room for both sides to review and evaluate joint arrangement implementation and explore ways to boost China-US economic and trade relations. 

Both sides likely to keep working on positive solution for continued extension via high-level economic and trade talks before year-end. 

Both sides agree to keep talks on boosting China-US flights and related issues. 

Market reaction

At the time of writing, the AUD/USD pair is down 0.08% on the day at 0.7018.