US Treasury Secretary Scott Bessent is scheduled to meet with Chinese Vice Premier He Lifeng in New York on Sunday for a final round of negotiations ahead of next week’s summit between President Donald Trump and Chinese President Xi Jinping in Washington. The talks aim to address ongoing disagreements between the two countries on key issues such as artificial intelligence competition and the trade of rare earth minerals.
This meeting follows the trade and technology ceasefire agreed upon by Trump and Xi last October in Busan, South Korea, after a series of retaliatory tariffs and export controls had escalated tensions. At that time, the United States postponed plans to impose export controls affecting thousands of Chinese companies, while China refrained from imposing stringent restrictions on rare earth and critical mineral exports. The current understanding is set to expire in November.
Ahead of the Washington summit, China has proposed extending the Busan truce through the remainder of Trump’s presidential term. However, sources familiar with the negotiations indicate that the US is insisting on a six-month extension, citing concerns that China has not fully met its commitments, especially regarding rare earth exports.
The United States is also pressing China to relax its restrictions on rare earth exports to Japan. This request is partly motivated by efforts to support an ally but also reflects concerns over the broader impact these restrictions are having on US supply chains. Japan and the US are particularly worried about China’s slowing of yttrium exports, a rare earth metal critical for manufacturing lasers, aircraft engines, and semiconductors, which is difficult to substitute.
In addition to rare earth issues, the two sides are working on details for a new Board of Trade, an agreement Trump and Xi committed to establishing in Beijing. This mechanism is intended to facilitate the identification of products in non-sensitive sectors for potential tariff reductions.
The summit between Trump and Xi, planned for next Thursday, will also include a state dinner hosted by the US president. This event occurs just four months after Trump’s visit to China, marking the first time Xi has traveled to Washington since 2016. Xi last met with President Joe Biden in San Francisco earlier this year and with Trump at Mar-a-Lago in 2017. The upcoming summit is seen as a critical opportunity to stabilize and potentially advance bilateral economic relations amid ongoing strategic competition.