U.S. and China Open High-Stakes Talks on AI, Tariffs, and Critical Minerals Ahead of Presidential Summit
Devangi Chandok, Jadetimes Staff
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng in Manhattan on Sunday for high-stakes economic talks aimed at laying the groundwork for an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping in Washington.
The daylong negotiations, held at JPMorgan Chase’s headquarters, were designed to forge preliminary agreements across critical points of friction, including artificial intelligence guardrails, expiring trade truces, and the supply of critical minerals essential for advanced manufacturing.
Heading into the summit, experts urged low expectations for major structural shifts, suggesting both sides are primarily focused on maintaining stability. “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, a China trade analyst and founder of Ashton Intelligence. “I think status quo is probably both sides’ general best expectation.”
A primary driver for Sunday’s meeting was the November 10 expiration of the current U.S.-China trade truce. Originally established in Busan, South Korea, in November 2025, the agreement capped tit-for-tat tariffs at roughly 20%. Although the U.S. Supreme Court subsequently struck down initial emergency-authority tariffs, Washington has actively moved to rebuild its tariff structure under alternative trade authorities. These include a restored 12.5% tariff linked to forced labor allegations and ongoing investigations targeting China’s industrial overcapacity.
Critical mineral supplies formed another tense focal point. While Beijing pledged under previous agreements to restore the flow of rare-earth magnets and strategic minerals to international markets, U.S. officials indicated performance has fallen short. A senior U.S. official noted Friday that China's mineral exports remained "not up to par," elevating the issue to a top priority for Washington given these materials' vital role in producing advanced semiconductors and next-generation technologies.
For the first time, bilateral talks formally expanded into artificial intelligence governance. Both nations occupy dominant positions in AI development, creating a urgent need to address systemic risks. Secretary Bessent emphasized that discussions would cover both closed-weight AI models, such as those developed by American firms like OpenAI and Anthropic, and open-weight models, which are gaining traction among U.S. businesses due to lower deployment costs.
“The United States remains the leader in AI. And we are open to discussions on avoiding shared risks and avoiding bifurcation of our two systems,” Bessent said in a statement preceding the meeting, calling for bilateral “guardrails” to keep potent AI capabilities out of the hands of non-state adversaries.
Beyond technology, negotiators worked through lingering commitments from the leaders' previous May meeting in Beijing. These include mutual pledges to reduce tariffs on non-strategic goods via a framework termed the “Board of Trade,” as well as Chinese promises to boost purchases of U.S. agricultural products by $17 billion annually and purchase more than 200 Boeing aircraft. Additionally, Washington is weighing regulatory shifts that could allow American pharmaceutical companies to invest directly in promising Chinese biotech firms.
Accompanying Vice Premier He was a prominent delegation of Chinese business leaders participating in parallel trade consultations. The delegation's arrival coincides with dynamic shifts in U.S. industrial policy, following President Trump’s recent indications of openness toward Chinese automakers establishing manufacturing facilities within the U.S., a stance that has drawn pushback from domestic auto trade groups citing national security concerns.
Sunday's high-level session reflects a continued pattern of preliminary diplomacy aimed at preventing sudden escalations between the world's two largest economies ahead of direct presidential engagements.
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