U.S.-China Talks Turn Positive Ahead of Trump-Xi Summit
U.S.-China Talks covered AI, tariffs and rare-earths ahead of the Trump-Xi summit and could ease policy uncertainty and shift supply-chain risk.
KEY TAKEAWAYS
- Senior U.S. and Chinese officials held multi-hour preparatory talks in New York and agreed to meet again.
- Talks covered a proposed U.S.-China AI Dialogue and a notification mechanism for national-security-level AI incidents.
- Talks addressed extending the tariff truce that expires on Nov. 10, 2026, and restoring rare-earth flows.
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U.S.-China talks turned constructive in New York on Sept. 20, 2026, when Treasury Secretary Scott Bessent and Vice Premier He Lifeng held multi-hour preparatory meetings covering AI safety, trade, and efforts to ease rare-earth flows ahead of the Sept. 24 summit.
New York Preparatory Talks
The talks took place at JPMorgan Chase’s Manhattan headquarters, beginning around 10:30 a.m. ET (1430 GMT) and lasting about eight hours. The U.S. delegation was led by Treasury Secretary Scott Bessent and included U.S. Trade Representative Jamieson Greer. The Chinese side was headed by Vice Premier He Lifeng, who oversees China’s economy. The length and seniority of the meetings reflected the importance both governments placed on economic and technology issues. Bessent described the engagement as successful and said the two sides agreed to meet again for further discussions.
Agenda and Stakes for the Summit
U.S. negotiators proposed establishing a U.S.-China AI Dialogue, a structured channel to address AI governance and safety. They also suggested a notification mechanism for AI incidents that reach a national-security threshold, aiming to increase transparency between the two powers. The dialogue would cover both open- and closed-weight AI models, referring to systems with publicly accessible versus restricted core parameters. This builds on a May accord between Presidents Trump and Xi to create an intergovernmental AI channel. Officials described the upcoming technical sessions as preliminary and agenda-setting rather than detailed negotiations.
The talks also covered a possible extension of the U.S.-China tariff truce, which is set to expire on Nov. 10, 2026. This arrangement directly affects trade policy and supply-chain costs. Delegates discussed improving flows of Chinese-produced rare-earth magnets and critical minerals, which Beijing severely curtailed during last year’s tariff escalations. The meeting used the China–U.S. economic and trade consultation mechanism to press for steadier trade and investment links and greater cooperation.
Officials framed the preparatory talks as setting the stage for potential agreements on AI, tariffs, and critical minerals at the White House summit. Both governments signaled a desire to stabilize ties despite ongoing technology and economic frictions. The discussions represent a step toward reducing immediate policy uncertainty ahead of the leader-level meeting in Washington.
