WASHINGTON AND BEIJING REACH FRESH UNDERSTANDING ON TRADE AND AI TALKS

US Treasury Secretary Scott Bessent has described his latest discussions with Chinese officials on trade and artificial intelligence as “very successful,” following an extended meeting in New York ahead of the planned summit between US President Donald Trump and Chinese President Xi Jinping. Bessent met Chinese Vice Premier He Lifeng on Sunday, September 20, with US Trade Representative Jamieson Greer and China’s top trade negotiator Li Chenggang also taking part. The discussions lasted about eight hours and were aimed at preparing the ground for agreements and further negotiations between the two economic powers.

Bessent said the two sides had agreed to establish a US-China AI dialogue to improve communication over the opportunities and risks associated with artificial intelligence. Washington also proposed a notification mechanism through which the two countries could alert each other about serious AI incidents, particularly those capable of creating national security concerns. Bessent said greater transparency was necessary between the United States and China, describing them as the world’s two leading AI powers, while the two sides agreed to continue discussions through another meeting.

Trade was also a major part of the discussions, with both countries examining ways to implement previous agreements and expand trade in goods considered non-sensitive. US officials said possible Chinese exports could include consumer and low-technology products, while American exports could include agricultural goods, energy products and medical devices. The talks also addressed the wider US-China trade relationship, including the future of an existing trade truce and efforts to maintain the flow of critical minerals and rare-earth materials that are important to American industries.

The discussions came just days before Trump and Xi are expected to meet in Washington, with trade, artificial intelligence and other strategic issues expected to feature prominently during their summit. The two leaders are scheduled to meet on Thursday, September 24, after their governments spent months negotiating issues ranging from tariffs to technology and critical minerals. US and Chinese officials are seeking to prevent renewed escalation in their trade relationship, although several issues remain unresolved and no major new agreement was announced after the New York meeting.

Chinese officials described the discussions as frank, in-depth and constructive, while US officials said the latest engagement would help prepare the two presidents for their upcoming meeting. Bessent said Washington and Beijing had made progress in creating channels for continued communication on AI and trade, but the talks did not resolve every outstanding issue. Further working-level discussions were expected as both sides prepare for the Trump-Xi summit and consider possible steps on trade, technology and other areas of their economic relationship.