U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet in New York on Sunday, with artificial intelligence, tariffs, trade and critical minerals expected to dominate the discussions.
The talks come just days before Trump and Xi are scheduled to meet in Washington on September 24.
Artificial Intelligence Moves to Center Stage
Artificial intelligence is emerging as one of the most important issues in the U.S.–China relationship.
The two countries are competing for leadership in advanced AI while also confronting questions about safety, access to technology and how increasingly powerful models should be governed.
Bessent has said the discussions are expected to include both open-weight and closed-weight AI models.
Open-weight models make key elements available for developers to download and modify, while many leading American AI systems operate under more restricted models.
Chinese open-weight AI systems have also been gaining attention among American companies because of their cost and flexibility.
The talks could provide an early indication of whether Washington and Beijing can find common ground on AI despite their intense technological competition.
Critical Minerals Remain a Major Issue
Rare earths and other critical minerals will also be high on the agenda.
These materials are essential for products ranging from smartphones and electric vehicles to advanced electronics and defense equipment.
China holds an influential position in global rare-earth processing and supply chains, giving the issue major strategic importance for Washington.
The United States has been working to diversify its supply chains while seeking improved access to critical materials.
Tariffs and Trade Truce Under Discussion
Tariffs remain another unresolved issue between Washington and Beijing.
The two countries have been operating under a trade truce that eased some of the tensions created by previous tariff increases and export restrictions.
That arrangement is due to expire in November unless the two sides agree to extend or replace it.
The upcoming discussions could therefore play an important role in determining what happens next in the U.S.–China economic relationship.
Major Chinese Companies Could Join Xi’s Visit
Xi’s upcoming Washington visit could also include executives from some of China’s largest companies.
Reuters reported that executives from companies including BYD, CATL and Xiaomi are among those under consideration for a Chinese business delegation.
The final list has not yet been confirmed.
Their potential participation highlights how the relationship extends far beyond government diplomacy into electric vehicles, batteries, smartphones and other major industries.
Trump and Xi Prepare for Washington Meeting
The September 24 summit will bring together the leaders of the world’s two largest economies at a time when their countries remain both deeply economically connected and strategic competitors.
Trade, artificial intelligence, critical minerals and broader geopolitical issues are expected to feature prominently.
The New York discussions between Bessent and He could help determine whether specific agreements are ready for the two presidents to consider.
Expectations for major breakthroughs remain uncertain, however, and several of the most difficult disputes between Washington and Beijing remain unresolved.
Why It Matters for Americans
The outcome could eventually affect much more than international diplomacy.
Changes to tariffs can influence the prices businesses and consumers pay for imported goods.
Critical-mineral agreements can affect industries including automobiles, electronics and energy.
And decisions surrounding artificial intelligence could influence one of the fastest-growing areas of the American technology industry.
With the Trump–Xi summit only days away, the New York negotiations will provide an important preview of where the world’s two largest economies may be headed next.