US Treasury chief and Chinese vice premier to meet ahead of Trump-Xi summit on AI, trade and minerals

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet on Sunday to lay groundwork for possible agreements on artificial intelligence, tariffs and critical minerals ahead of the high-profile Washington summit between President Donald Trump and President Xi Jinping. The talks will address the status of a U.S.-China trade truce that expires on Nov. 10, the flow of Chinese rare-earth magnets and other critical minerals, and the establishment of "guard rails" for AI after recent security breaches involving AI models.

Analysts expect the meeting to result in modest steps that signal both sides are avoiding further escalation in a trade relationship that impacts the global economy. > "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."

Key issues stem from the May meeting in Beijing, including proposals to cut tariffs on non-strategic goods and Chinese commitments to increase purchases of U.S. agricultural products and Boeing aircraft. The current truce, reached in Busan, capped U.S. tariffs on Chinese goods at about 20 percent, but a senior U.S. official said China's delivery on critical-mineral commitments has been inadequate.

Bessent indicated the AI discussions will cover both open-weight models, which can be downloaded and fine-tuned, and closed-weight systems. He noted that Chinese open-weight models are gaining traction with U.S. firms due to lower 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.

The two sides also plan to revive a "Board of Trade" mechanism to reduce tariffs on non-strategic goods and to address investment issues, including potential U.S. pharmaceutical investments in Chinese drug development. China's Ministry of Commerce announced that He will lead a delegation of Chinese companies to the United States for economic and trade consultations before the summit, mirroring a U.S. business delegation that visited Beijing in May.