Reported by Simon Daniel Yusuph l Journalist at Weng Global
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have begun high-level talks in New York as Washington and Beijing seek to prepare the ground for a meeting between US President Donald Trump and Chinese President Xi Jinping later this week.
The September 20 discussions, held at JPMorgan Chase’s headquarters in Manhattan, also involve US Trade Representative Jamieson Greer and focus on trade, tariffs, artificial intelligence and critical minerals ahead of the planned Trump-Xi summit in Washington on September 24.
Trade and Economic Issues Take Centre Stage
The New York meeting is part of continuing economic and trade engagement between the world’s two largest economies.
According to Reuters, the officials are discussing ways to extend a US-China trade truce that is due to expire in November, alongside possible adjustments involving tariffs and trade in non-strategic goods.
Washington is also seeking improved access for American agricultural products and other exports, while China remains a major supplier of critical minerals and rare-earth materials used in advanced manufacturing and technology.
The US Trade Representative’s office said Greer would join Bessent for the meeting with He as part of preparations for the Washington summit. The agency said the discussions would build on recent commitments between the two countries and address trade involving American farmers, manufacturers and workers.
Artificial Intelligence Added to the Agenda
Artificial intelligence has emerged as another significant issue in the negotiations.
Reuters reported that the discussions include AI-related issues alongside trade and critical minerals. Bessent had previously indicated that Washington was open to discussions with Beijing concerning shared risks associated with AI, including different approaches to the development and use of advanced models.
The subject has broader implications because the US and China are among the leading countries developing advanced AI technologies.
The talks could therefore extend beyond commercial competition to questions surrounding safeguards, security and the responsible development of increasingly powerful AI systems.
Critical Minerals Remain a Strategic Concern
Critical minerals and rare-earth materials are another major point of interest for Washington.
These materials are important to the production of electronics, advanced technologies and other industrial goods. China’s position in global supply chains has made the issue particularly significant in US-China economic relations.
Reuters reported that US officials are concerned about the adequacy of Chinese supplies of rare-earth magnets and other critical minerals, making the issue a potential area for discussion before the leaders meet.
Any agreement affecting the flow of these materials could have consequences beyond the two countries because manufacturers around the world depend on stable access to critical components and minerals.
Talks Follow Earlier US-China Engagement
The New York meeting is not the first recent attempt by Bessent and He to manage economic tensions between Washington and Beijing.
The two officials have held several rounds of discussions as the Trump administration and the Chinese government have sought to manage tariffs, trade commitments and broader economic disagreements.
In March, the US Treasury said Bessent and He were scheduled to meet in Paris to discuss bilateral economic and trade issues.
The latest talks come as both governments attempt to establish issues that can be addressed when Trump and Xi meet in Washington.
The White House previously said Trump and Xi had agreed in May to pursue a constructive relationship and that Xi would visit Washington later in the year.
Trump-Xi Summit Set for Washington
The New York negotiations are taking place only days before the planned September 24 meeting between Trump and Xi.
The summit is expected to place the broader US-China relationship under scrutiny, particularly trade, tariffs, technology and critical mineral supplies.
The outcome of the ministerial-level discussions could help determine which economic issues reach the leaders’ table and whether negotiators can narrow differences before the presidential meeting.
However, the New York talks do not by themselves establish that a major agreement will be reached. Reuters reported that negotiators are working on potential areas of cooperation, while significant differences remain between Washington and Beijing.
Why the Talks Matter
The US and China have significant influence over global trade, technology, investment and manufacturing.
Developments in their economic relationship can therefore affect companies and consumers beyond their borders, including businesses involved in agriculture, manufacturing, technology and international supply chains.
For other economies, including African countries, changes in US-China trade policy can also have indirect consequences through commodity prices, investment flows, manufacturing costs and demand for raw materials.
A more stable relationship could reduce uncertainty for international businesses, while renewed trade restrictions could increase pressure on global supply chains.
The significance of the New York meeting will ultimately depend on whether the two sides can translate discussions into specific commitments.
What Happens Next
Bessent, He and Greer are expected to continue negotiations as the two governments prepare for the Trump-Xi summit in Washington on September 24.
The immediate issues include the future of the trade truce, tariffs on selected goods, agricultural trade, critical minerals and AI-related concerns.
Any agreements reached by the negotiating teams would still need to be reflected in official announcements or commitments from the two governments.
For now, the New York talks represent another effort by Washington and Beijing to manage economic tensions while preparing for direct engagement between Trump and Xi.
Weng Global – Stories beyond borders
Sources
- Reuters
- United States Trade Representative
- U.S. Department of the Treasury
- Associated Press
- South China Morning Post
