U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in New York City on Sunday to prepare for an upcoming summit between President Donald Trump and Chinese President Xi Jinping. The meeting, held at JPMorgan Chase’s headquarters in Manhattan, began shortly after 10 a.m. and aimed to address key issues including trade relations, artificial intelligence (AI), and critical minerals.
The U.S.-China trade truce reached in November 2025, which capped tariffs at about 20 percent after a period of escalating duties, is set to expire in November 2026. Both sides are under pressure to sustain the fragile detente amid ongoing economic and strategic competition. Bessent described the meeting as an opportunity for “focused, fulsome and constructive talks” to set the stage for the forthcoming talks between the two leaders in Washington.
Trade remains a central topic, particularly China’s commitments under the existing truce to increase purchases of U.S. agricultural products by $17 billion annually and to procure over 200 Boeing aircraft. The Biden administration is also working through unresolved issues related to tariffs imposed during the Trump administration under different authorities, including those concerning forced labor and industrial overcapacity.
A significant area of concern is the flow of critical minerals and rare-earth elements from China, which are vital for manufacturing advanced technologies, including semiconductor components integral to AI development. U.S. officials have expressed dissatisfaction with China’s performance in restoring these supply chains, which will be prominently addressed during negotiations.
Artificial intelligence further complicated the discussions, with both the U.S. and China being leading global developers of advanced AI technologies. Officials are exploring potential “guard rails” to prevent misuse of AI and avoid bifurcation of AI systems, aiming to reduce shared risks. Bessent emphasized the importance of managing both open-weight AI models, whose core elements are publicly accessible, and closed-weight models, which are more proprietary. The issue is of high strategic importance, with concerns raised about security breaches and potential misuse of AI in areas such as biological and nuclear weapons.
There is cautious expectation among analysts that while some incremental agreements may emerge to demonstrate ongoing cooperation, a major breakthrough is unlikely. Anna Ashton, a China trade expert, suggested the likely outcome would maintain the status quo rather than significant shifts.
In parallel, China announced that He Lifeng would lead a delegation of Chinese companies to the U.S. for economic and trade consultations ahead of the summit, mirroring a previous visit by U.S. business leaders to Beijing. President Trump has expressed openness to Chinese automakers establishing manufacturing operations in the United States, signaling a willingness to pursue expanded economic ties despite tensions.
The meetings reflect ongoing efforts to manage a complex bilateral relationship marked by competition and cooperation, with global economic stability and technological leadership hanging in the balance.