U.S. and China Extend Busan Trade Truce Until January, Treasury Secretary Discusses Iran Conflict Scenarios

Treasury Secretary Scott Bessent announced that U.S. and Chinese officials have agreed to extend the bilateral trade truce known as the Busan agreement until Jan. 10, pushing back the original Nov. 10 deadline. The agreement, first set by President Donald Trump and President Xi Jinping in October 2025, was intended to ease economic tensions between the two nations.

Bessent also described three scenarios that could end the seven-month conflict with Iran: internal power struggles within the regime, a popular uprising, or Tehran agreeing to negotiate a settlement. He said the Treasury Department continues a broad campaign targeting Iranian assets, financial networks and foreign entities that facilitate Iran’s economy.

The department’s Operation Economic Outcast, launched in August, aims to further isolate Iran from the global financial system. Bessent warned that companies and banks assisting Tehran could face prosecution and asset seizures.

He noted uncertainty about how Iranian officials attending the United Nations General Assembly will return home after restrictions on Iranian airlines, which have halted most external flights.

During recent talks with China’s Vice Premier He Lifeng, Bessent proposed an AI notification mechanism to alert each other about AI-related safety incidents that could pose national security risks, emphasizing the importance of cooperation on emerging technologies.