US And China Discuss Trade And AI Ahead Of Trump-Xi Summit

US Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in New York to discuss trade measures and establish a formal communication channel for artificial intelligence safety ahead of a planned summit between US President Donald Trump and Chinese President Xi Jinping.

The discussions lasted approximately eight hours at JPMorgan Chase’s headquarters, according to reporting from France 24.

The high-level talks served as preparation for a scheduled White House meeting between Trump and Xi.

Top US trade official Jamieson Greer also participated in the negotiations alongside Bessent and He.

“We just had a very successful engagement with the Chinese on trade and AI,” Bessent told reporters following the meetings.

Establishing an Artificial Intelligence Dialogue and Notification Mechanism

Delegates from both nations focused on creating a bilateral communication framework dedicated to artificial intelligence risks.

Bessent stated that Washington proposed a notification mechanism designed to handle potential incidents or situations escalating to a national security level regarding artificial intelligence.

Both economic teams agreed to reconvene for further working-level talks to advance the proposed dialogue.

“The US has proposed that we have a notification mechanism between the two countries,” Bessent said.

A source familiar with the matter indicated that Bessent and He additionally held a one-on-one discussion during the day.

Li Chenggang, recently elevated to a top-level international trade representative post, also attended the New York sessions on the Chinese side, though the Chinese delegation did not issue statements to reporters.

Navigating Trade Truces, Tariffs, and Critical Supply Chains

Economic officials explored potential mutual tariff reductions on specific non-sensitive goods as part of broader efforts to ease bilateral tensions.

Greer noted that negotiating teams continue working to identify consumer products from China and energy, agricultural, and medical device products from the US that could be considered separately from broader trade restrictions.

American officials also sought guarantees regarding the steady flow of rare earth magnets and critical minerals necessary for domestic manufacturing.

“It is imperative that we are able to work together,” Greer emphasized.

Discussions also examined whether Beijing is fully fulfilling prior commitments to purchase US agricultural goods under existing trade agreements.

Another layer of economic statecraft involved ongoing US economic pressure on Iran, with Washington’s war with Tehran reaching its seventh month.

As a primary diplomatic backer of Iran and a major buyer of its oil output, China remains a central actor in discussions surrounding regional stability and sanctions enforcement.

Outlook for Upcoming Leader Summits

Diplomatic analysts suggest that near-term expectations for the upcoming Trump-Xi meeting remain measured.

“One of the only things we can hope for in the short term is a truce, and that this will likely continue through the remainder of this year,” said Kurt Campbell, chairman of The Asia Group consultancy and former US deputy secretary of state.

Following the White House meeting, Trump is anticipated to invite Xi to additional gatherings later in the year.

Campbell noted that Trump is expected to announce plans to meet with Xi twice more, including at the Asia-Pacific Economic Cooperation forum in Shenzhen in November and potentially at a G20 summit hosted at Trump’s Doral resort in Miami in December.