US-China Talks Target AI, Tariffs Ahead of Trump-Xi Summit

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng began high-level talks in New York on Sunday, seeking progress on artificial intelligence, tariffs and critical minerals ahead of this week’s summit between President Donald Trump and Chinese President Xi Jinping.

The discussions at JPMorgan Chase’s Manhattan headquarters also include U.S. Trade Representative Jamieson Greer. Bessent said he expected “focused, fulsome and constructive talks” designed to prepare potential agreements for the Trump-Xi meeting in Washington.

A major issue is the U.S.-China trade truce, which expires November 10. Officials are also expected to address Chinese exports of rare-earth magnets and critical minerals, which Washington says remain below agreed levels, as well as possible AI safety guardrails.

The negotiations build on commitments made during Trump and Xi’s May meeting in Beijing. Those included efforts to lower tariffs on non-strategic goods, Chinese pledges to increase annual purchases of U.S. agricultural products by $17 billion and plans to acquire more than 200 Boeing aircraft.

Artificial intelligence has emerged as a significant new component of the negotiations. Bessent said discussions could cover both open- and closed-weight AI models as Washington and Beijing explore ways to manage shared security risks. He has previously advocated guardrails intended to prevent advanced AI systems from reaching malicious non-state actors.

Rare earth supplies are closely linked to the issue because critical minerals are essential for producing advanced semiconductors used in AI infrastructure.

Trade and investment will also remain central. Washington and Beijing previously agreed to establish mechanisms for discussing tariff reductions on non-strategic goods and resolving specific investment issues.

China’s Ministry of Commerce said He is leading a delegation of Chinese companies participating in economic and trade consultations before the presidential summit. The visit comes as Trump has expressed openness to Chinese automakers establishing U.S. factories, while American auto industry groups have urged the administration to maintain restrictions on Chinese vehicle sales over national security concerns.

The New York negotiations are expected to determine which trade, technology and critical-mineral issues are ready for consideration when Trump and Xi meet later this week.