Bessent’s China Talks Set the Table for Trump-Xi Summit as Trade, AI and Rare Earths Take Centre Stage

Bessent’s talks with China have moved from diplomatic preparation to a potentially consequential pre-summit test, with U.S. Treasury Secretary Scott Bessent meeting Chinese Vice Premier He Lifeng in New York ahead of the planned September 24 meeting between the current president, Donald J. Trump, and Chinese President Xi Jinping. The discussions covered trade, artificial intelligence, rare earths and other economic issues, giving Washington and Beijing an opportunity to narrow disagreements before their leaders sit down — although, as usual with U.S.-China relations, agreeing on the menu may prove easier than agreeing on the meal.

Bessent Opens the Door to China Talks as Trump-Xi Summit Nears

Bessent and He met at JPMorgan Chase’s Manhattan headquarters on Sunday, with U.S. Trade Representative Jamieson Greer also participating. Bessent said the discussions were intended to continue work on the U.S.-China economic and trade relationship and lay the groundwork for the Trump-Xi summit. The meeting was particularly significant because both governments are trying to manage a fragile trade relationship while a broader agreement remains unresolved.

The negotiations were not limited to tariffs. U.S. officials also raised artificial-intelligence risks and proposed a mechanism through which Washington and Beijing could notify each other about AI incidents that reach a national-security level. The two sides also discussed critical minerals and trade in non-sensitive goods, including agricultural and energy products. Bessent later described the engagement as successful, but the discussions themselves do not amount to a final agreement between the two governments.

Bessent and Beijing Try to Fix a Trade Relationship Still Full of Friction

The timing of Bessent’s talks is important because the Trump-Xi summit is expected to address several unresolved economic issues. The existing U.S.-China trade truce is due to expire in November, creating an incentive for both sides to determine whether it can be extended or replaced with a more durable arrangement. Rare earths are another major point of interest because they are important to modern manufacturing and technology supply chains.

Artificial intelligence has now joined the traditional tariff and trade disputes as a major area of competition and possible cooperation. The United States and China are among the world’s leading AI powers, but they have sharply different approaches to technology policy and national security. Bessent’s proposal for greater communication over serious AI incidents therefore represents an attempt to establish a channel between two competitors without suggesting that their broader strategic rivalry has disappeared.

The Bessent talks have consequently provided an important preview of what could confront the current president and Xi when they meet in Washington. Whether the preparation produces concrete agreements, an extension of existing arrangements or simply another round of negotiations remains to be seen. OGM News will continue watching the Trump-Xi summit and the economic discussions surrounding it, because in U.S.-China diplomacy, the handshake may make the photograph — but the fine print usually tells the real story.