US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet in Manhattan to negotiate potential agreements on artificial intelligence, tariffs, and critical minerals ahead of a high-stakes Washington summit between US President Donald Trump and Chinese President Xi Jinping. According to reporting from Reuters, the Sunday meetings at JP Morgan Chase’s headquarters will also include US Trade Representative Jamieson Greer, running all day starting at approximately 10:30 a.m. local time.
Discussions in New York focus heavily on the status of a bilateral trade truce set to expire on November 10, alongside supplies of Chinese rare-earth magnets and critical minerals that US officials characterize as insufficient. Negotiators are also addressing potential safety guard rails for artificial intelligence following reports of security breaches involving AI models. Analysts suggest that while a sweeping breakthrough remains unlikely, both Washington and Beijing are expected to pursue modest deliverables to avoid escalating economic tensions.
“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, as reported by Reuters. “I think status quo is probably both sides’ general best expectation.”
Unresolved Trade Issues and Tariffs
Many topics on the agenda for Bessent, He, and Greer are holdovers from previous leader talks held in Beijing. These legacy items include ongoing discussions to reduce tariffs on non-strategic goods and previous Chinese pledges to increase agricultural purchases by $17 billion annually while buying more than 200 Boeing aircraft. The current Manhattan meetings follow a 16-month pattern of preparatory talks in various European and Asian cities.
This diplomatic rhythm previously yielded a November 2025 truce in Busan, South Korea, which capped US tariffs on Chinese goods at roughly 20% following a period of escalating triple-digit duties. Although the US Supreme Court subsequently struck down certain Trump administration tariffs enacted under a national emergencies law, the administration has rebuilt duties under new authorities. According to Reuters, these measures include a reinstated 12.5% tariff over forced labor allegations alongside a pending investigation into industrial overcapacity in China.
Under the Busan trade truce, China committed to restoring the flow of critical minerals to global markets. However, a senior US official stated that Beijing’s performance on mineral shipments has fallen short, making it a primary point of contention for the upcoming presidential summit.
Artificial Intelligence and Advanced Technology
The inclusion of artificial intelligence in the Bessent-He talks highlights the role of both nations as primary drivers of advanced technology and global tool adoption. Bessent noted that discussions will encompass both open-weight models, which feature publicly accessible code for user modification, and closed-weight systems.
Chinese open-weight models have gained traction among US firms seeking cost-effective alternatives to proprietary tools from domestic developers like Anthropic and OpenAI. Bessent stated that the United States remains an AI leader and is willing to discuss shared risks and system bifurcation. Furthermore, the Treasury Secretary has advocated for bilateral guard rails to prevent advanced AI models from falling into the hands of malign non-state actors.
Did You Know? The upcoming negotiations follow a diplomatic pattern established over a 16-month period where officials met across European and Asian cities to prepare potential agreements for Presidents Trump and Xi.
Investment Rules and Corporate Delegations
In parallel with government talks, the Chinese Ministry of Commerce announced that Vice Premier He will lead a delegation of Chinese companies to the United States to participate in trade consultations. This business delegation mirrors a group of US chief executives who traveled to Beijing with President Trump in May. The business outreach arrives as Trump expresses openness to Chinese automakers constructing manufacturing facilities within the United States, although domestic auto industry groups have urged the administration to maintain vehicle sales bans on national security grounds.
Bilateral discussions also build upon a May agreement to establish a “Board of Trade” mechanism designed to lower non-strategic tariffs and manage specific investment disputes. While the Trump administration continues to tighten restrictions on outbound US investment in certain Chinese sectors, Reuters reported that officials are developing regulations that would permit US pharmaceutical companies to invest in promising Chinese drug developments and execute licensing agreements.
Frequently Asked Questions
When and where are the high-level trade meetings taking place?
According to Reuters, US Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng, and US Trade Representative Jamieson Greer are meeting on Sunday at JP Morgan Chase’s headquarters in Manhattan, starting at approximately 10:30 a.m. local time.
What are the primary topics on the negotiation agenda?
Key agenda items include the expiring November 10 US-China trade truce, flows of rare-earth minerals and magnets, potential regulatory guard rails for artificial intelligence, and longstanding efforts to reduce tariffs on non-strategic goods.
What is the expected outcome of the preliminary talks?
Trade analysts cited by Reuters indicate that Washington and Beijing are most likely to agree on modest steps and small deliverables to prevent further escalation, maintaining the current diplomatic status quo ahead of the presidential summit.
What steps should Washington and Beijing prioritize to secure long-term stability in their trade relationship?
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