Treasury Secretary to Discuss AI and Rare Earths With China Ahead of Trump-Xi Summit

US Treasury Secretary Scott Bessent plans to meet with Chinese Vice Premier He Lifeng in New York this weekend to discuss artificial intelligence, trade, and rare earth minerals, ahead of a summit between Presidents Trump and Xi Jinping later this month. The talks may extend into a second day at a technical working level, with officials keeping the agenda flexible for broader discussion.

AI Competition Takes Center Stage

Bessent indicated the discussions would cover both open and closed AI model systems, noting that Chinese open-weight models have grown increasingly popular among US companies due to their lower cost compared to offerings from major American AI developers. This comes even as US officials have raised concerns about a Chinese AI company allegedly copying American AI technology.

Bessent emphasized that the US remains the global leader in AI while expressing openness to discussing shared risks and avoiding a technological split between the two countries. He has previously advocated for US-China agreement on AI safeguards aimed at preventing powerful AI systems from falling into the hands of malicious actors.

Trade and Rare Earths Also on the Agenda

Beyond AI, the meetings are expected to address a potential extension of the current tariff truce set to expire in November, along with concerns over China’s rare earth mineral exports, which the US says have fallen short of earlier commitments made under the existing agreement.

Broader Economic Relationship in Focus

Officials also plan to raise concerns about fentanyl-related chemical exports from China. Despite the high-level nature of the talks, trade policy experts note expectations for major new agreements remain modest, with the meetings viewed more as an effort to manage existing tensions and ensure prior commitments are being honored.

Separately, China’s Commerce Ministry confirmed a business delegation will accompany the vice premier to the US ahead of the summit.