Trade Agreement Extended Between U.S. and China
Treasury Secretary Scott Bessent has announced that U.S. and Chinese officials have agreed to prolong the bilateral trade truce known as the “Busan agreement.” This announcement was made on a recent Fox News segment.
The Busan agreement, which originated from discussions between President Donald Trump and Chinese President Xi Jinping in October 2025, aims to ease economic tensions that have existed between the two countries.
“We’ve decided to extend the Busan agreement, which was set to expire on November 10, until January 10,” Bessent shared during an interview on “Special Report.” He emphasized that this extension provides more time to explore economic opportunities together.
In addition to this trade update, as the conflict involving the U.S. and Iran approaches seven months, Bessent outlined a few potential resolutions, noting that the Iranian regime is somewhat of a “cornered animal.”
He articulated three scenarios for how the conflict might resolve: internal strife among regime members, a popular uprising among the Iranian populace, or possibly reaching a negotiation. “One, the regime could turn on itself—it’s not impossible,” he explained. “Two, there might be some sort of uprising. They’ve probably lost around 50,000 people in their own country, so that’s a tall order. And three, the Iranians could be persuaded to come to the table and stick to any agreement,” he added.
U.S. Economic Pressure on Iran Intensifies
The Treasury Department continues its extensive campaign of economic pressure on Iran, targeting its financial assets while urging other nations and businesses to cut economic ties with Tehran. Bessent claimed, “This is an effort the world has never seen before.”
He mentioned the ongoing operation, named Operation Economic Outcast, which aims to further isolate Iran from the global financial system by cutting off its financial support. “We are constricting their financial support like never before,” Bessent remarked. “I can’t predict if it’s going to take a week, a month, or longer, but eventually, I believe they will concede.”
Bessent pointed out the seriousness of sanctions against Iranian financing, stating, “We know who the financiers are. We’re coming after you relentlessly.” He expressed uncertainty about how Iranian officials attending the United Nations would return home given recent restrictions on flights from Iran.
Potential AI Cooperation Between U.S. and China
During his discussions with China’s Vice Premier He Lifeng, Bessent suggested an AI “notification mechanism” that would let both nations inform one another about safety incidents related to AI that might pose national security concerns. “They seem very keen to engage with us on AI since the U.S. currently holds a substantial lead while China is still catching up,” he noted.
“It’s crucial that we engage on this, and I think we’re trying to pinpoint what the major risks are, whether they involve AI that’s uncontrolled or non-state actors using AI for cyber operations or biological threats,” he concluded.
