US and China to Hold High-Level Talks on AI, Tariffs, and Critical Minerals Ahead of Summit

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet on Sunday in New York to lay the groundwork for a high-stakes summit between U.S. President Donald Trump and Chinese President Xi Jinping. The discussions are expected to focus on sensitive economic issues, including artificial intelligence, tariffs, and the supply of critical minerals, according to a report by Reuters.

Setting the Stage for Summit

The all-day meetings, which will also include U.S. Trade Representative Jamieson Greer, are scheduled to take place at JPMorgan Chase's headquarters in Manhattan. The primary goal is to prepare potential agreements for the two heads of state, continuing a series of discussions held over the past 16 months aimed at de-escalating economic tensions between the world's two largest economies.

Analysts suggest the most probable outcome is a series of modest steps to maintain stability rather than a major breakthrough. "I think there will be some show of deliverables because of the fact that it’s a presidential summit coming, but I don’t feel like we’re on the verge of some sort of breakthrough," said Anna Ashton, founder of Ashton Intelligence, in comments to Reuters.

Key Issues on the Agenda

Several critical topics are slated for discussion, many of them unresolved from a previous meeting between Trump and Xi in May. Key points include:

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• Expiring Trade Truce: The status of a trade agreement set to expire on November 10 is a top priority. This truce, reached in November 2025, capped U.S. tariffs on Chinese goods at approximately 20% after a period of significant escalation.
• Critical Minerals: U.S. officials will address China's supply of rare-earth magnets and other critical minerals. A senior U.S. official stated Friday that China's performance in restoring these flows "has not been up to par."
• Artificial Intelligence: In a significant new development, the officials will discuss establishing "guard rails" for AI. Treasury Secretary Bessent said talks would cover both open- and closed-weight models and focus on managing shared risks.
• Outstanding Pledges: Officials will revisit Chinese commitments to increase purchases of U.S. agricultural goods by $17 billion annually and to buy more than 200 Boeing aircraft.

Broader Economic Context

These talks occur amid a complex backdrop of ongoing trade disputes. The Trump administration is reportedly finalizing a separate tariff investigation aimed at what it calls rampant excess industrial capacity in China. At the same time, discussions are underway to potentially reduce tariffs on non-strategic goods through a new "Board of Trade" mechanism.

On the investment front, while the U.S. has tightened restrictions in some sectors, it is also reportedly developing rules that could permit American pharmaceutical firms to invest in and license promising Chinese drugs. The meeting will also feature a delegation of Chinese companies, mirroring a group of U.S. CEOs that accompanied President Trump to Beijing in May.