Senior economic representatives from the United States and China initiated high-level discussions in New York City on Sunday, aiming to pave the way for potential agreements on trade, artificial intelligence, and critical minerals. The talks precede a scheduled meeting between US President Donald Trump and Chinese President Xi Jinping later this week.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met at JPMorgan Chase’s Manhattan headquarters, with US Trade Representative Jamieson Greer also in attendance. The negotiations come four days before Trump hosts Xi at the White House, as both nations seek to de-escalate tensions between the world’s two largest economies.
“I’m looking forward to having focused, fulsome and constructive talks today that will set the stage for our leaders’ meeting,” Bessent told reporters upon arrival.
A primary focus of the dialogue is the fragile trade truce between the two nations, which is set to expire on November 10. The agreement, finalized in Busan, South Korea, last November, limited US tariffs on Chinese goods to approximately 20 percent following a reciprocal trade dispute that had temporarily pushed tariff rates into triple digits.
Washington continues to pressure Beijing regarding the supply of rare-earth magnets and other critical minerals essential for industries ranging from automotive manufacturing to advanced semiconductors. Although China committed to restoring mineral flows under the previous truce, a senior US official stated on Friday that Beijing’s compliance had “not been up to par.”
Artificial intelligence has emerged as a significant new topic in the negotiations. Bessent indicated that both sides might discuss establishing “guardrails” to mitigate shared risks, such as preventing powerful AI models from reaching malign non-state actors. Discussions are expected to cover both open-weight and closed-weight models, noting that Chinese open-weight systems have become increasingly attractive to US companies due to lower costs compared to offerings from firms like OpenAI and Anthropic.
“The United States remains the leader in AI,” Bessent said. “And we are open to discussions on avoiding shared risks and avoiding bifurcation of our two systems.”
Iran also presents a potential point of friction. As one of Tehran’s key economic partners and a major buyer of its oil, China remains a focal point for US efforts to intensify economic pressure on Iran amid the ongoing US-Israel conflict, now in its seventh month.
Despite the comprehensive agenda, experts anticipate modest outcomes. Anna Ashton, founder of Ashton Intelligence, told Reuters that while some visible deliverables are likely due to the upcoming presidential summit, a major breakthrough is not expected, with the status quo serving as the general expectation for both sides.
Former US Deputy Secretary of State Kurt Campbell echoed this sentiment, suggesting the immediate objective is merely to maintain a truce and contain tensions through the end of the year. Sunday’s session marks another step in a series of meetings between Bessent, He, and Greer over the past 16 months, designed to identify areas of consensus prior to the direct engagement between the two leaders.
AI guardrails? Really? I just want to know if this truce actually holds past November 10th.
Great to see diplomacy in action, but I doubt they’ll solve the rare-earth supply issue before the summit.