US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to hold high-level economic talks in New York on Sunday, September 20, as Washington and Beijing seek to prepare the ground for a major meeting between US President Donald Trump and Chinese President Xi Jinping later this week.
The discussions, which will also involve US Trade Representative Jamieson Greer, are expected to focus on artificial intelligence, tariffs, trade, rare-earth magnets and critical minerals. The talks come at a sensitive moment in US-China economic relations, with an existing trade truce scheduled to expire on November 10.
AI Security Moves Into Focus
Artificial intelligence is emerging as a major area of discussion between the world’s two largest economies. Bessent has indicated that the talks could address both open-weight and closed-weight AI models, as well as ways of managing shared risks and preventing the fragmentation of the two countries’ technology ecosystems.
Washington has increasingly focused on AI security as competition with China intensifies, while both countries remain major developers and users of advanced AI technologies.
Critical Minerals and Rare Earths
The supply of Chinese rare-earth magnets and other critical minerals is another major issue. US officials have said Chinese mineral flows have not fully met commitments made under the existing trade truce.
Critical minerals are essential to a wide range of industries, including technology, electronics and advanced manufacturing, making their availability an important issue for global supply chains.
Trade Truce Under Pressure
The two sides are also expected to discuss the future of their tariff arrangement, which is due to expire in November. Washington wants to monitor China’s implementation of existing commitments while seeking improved market access for US farmers, manufacturers and workers.
The New York talks are intended to identify areas where Trump and Xi could potentially make progress when they meet in Washington on September 24. China is also sending a delegation of business leaders to the United States for economic and trade consultations.
Talks Set the Stage for Trump-Xi Meeting
The Bessent-He discussions are therefore expected to serve as an important preparatory round before the Trump-Xi summit. While the two governments continue to compete over technology, trade and strategic resources, the talks provide a channel for addressing unresolved economic issues and managing tensions ahead of the leaders’ meeting.
Any progress on AI safeguards, critical-mineral supplies or trade arrangements could have implications for global technology markets and international supply chains.
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