US Treasury Secretary to Discuss AI, Rare Earths with Chinese Vice Premier, Source Says

U.S. Treasury Secretary Scott Bessent plans to meet with Chinese Vice Premier He Lifeng in New York this weekend to discuss artificial intelligence, trade, and the supply of rare earth minerals, a source familiar with the matter told Reuters. The high-level talks are scheduled ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping on September 24 in Washington.

Key Topics on the Agenda

The discussions will cover several strategically important economic issues as the world's two largest economies navigate complex trade and technology competition. According to the source, the main points of discussion include:

• Artificial Intelligence: The dialogue is expected to cover both "open- and closed-weight models," Bessent said in a statement.
• Rare Earths: These minerals are crucial for the manufacturing of many advanced technologies, making their supply chains a key point of economic security.
• General Economic Issues: The meeting will also address broader trade relations between the two nations.

The Associated Press was the first to report on the planned U.S. discussions.

The AI Debate: Open vs. Closed Models

Ad

The focus on different types of AI models is significant. Open-weight models, which have publicly accessible core components, can be downloaded and customized by users. Chinese open-weight models have reportedly grown in popularity with some U.S. companies due to their lower cost compared to closed-weight, proprietary systems developed by U.S. firms like OpenAI and Anthropic.

The issue was recently highlighted in a Reuters report that a U.S. government website had employed an AI model from Chinese company Alibaba. The report noted that the FBI had previously accused Alibaba of "malicious" copying of technology from Anthropic.

Broader Context and Market Implications

This meeting serves as a critical preparatory step for the upcoming presidential summit, where technology and trade are expected to be central themes. For investors, the outcome of these talks could signal the future direction of U.S.-China economic policy, particularly regarding technology controls and supply chain stability.

Rare earths are a point of significant leverage for China, which dominates the global market. Any discussion on this topic is closely watched by the technology and manufacturing sectors, which rely on a stable supply of these critical materials for everything from smartphones to electric vehicles and defense systems.