The Pulse
Bessent and He Set AI Talks Against a Wider Trade Truce
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to discuss AI risks, trade and critical minerals in New York on September 20. The talks come days before a Donald Trump–Xi Jinping summit and as a tariff truce
AI.info Team ·
The United States and China are preparing to discuss artificial intelligence at the same table where they will argue over tariffs, rare-earth supplies and market access. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng are scheduled to meet in New York on Sunday, September 20, ahead of a September 24 summit between President Donald Trump and President Xi Jinping.
Washington presents the meeting as a test of whether the two governments can keep trade tensions contained while their technology competition intensifies. Beijing enters with complaints about U.S. restrictions on advanced technology, while the Trump administration wants stronger Chinese action on critical minerals, fentanyl precursor chemicals and trade commitments.
The AI discussion is not expected to produce an agreement on export controls or access to advanced computing hardware. Instead, Bessent has framed it around shared risks and the possibility of preventing the two countries' AI systems from splitting into separate, incompatible spheres.
Reuters reported that the meetings could continue into Monday at the working level, with an agenda flexible enough to cover several economic disputes. USTR confirmed the Sunday meeting in a September 18 announcement.
Washington Wants AI Contact Without Easing Controls
Bessent said the United States remains the AI leader but is willing to discuss risks shared by both countries. “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,” he said in a statement cited by Reuters.
He also said the discussions would cover “both open- and closed-weight models.” Open-weight systems make key model components available for download and modification, while closed-weight systems keep those components under the developer’s control. Chinese open-weight models have gained attention among U.S. companies partly because they can cost less than proprietary systems developed by firms such as OpenAI and Anthropic.
The language leaves room for a narrow conversation about safety practices without committing either side to a change in its technology policy. Bessent has previously argued that the United States and China should develop AI guardrails aimed at keeping powerful systems away from malign non-state actors. The administration has also rejected calls to slow the domestic race to build more capable models.
Chinese officials have separately called for broader international cooperation on AI while criticizing what they describe as alarmism from U.S. technology companies. Neither side has announced a draft framework for the New York talks, and the public statements do not establish that Washington and Beijing agree on what risks should be addressed first.
Rare Earths Put a Material Test on the Agenda
The more immediate bargaining may involve materials needed by technology and manufacturing companies. China has restricted exports of some rare-earth products and magnets during the wider tariff dispute, creating pressure for U.S. manufacturers that rely on Chinese processing and supply chains.
Reuters reported that the United States believes Chinese critical-mineral shipments have not met the terms of an existing trade truce. The senior U.S. official cited in the report said the issue would be raised before the Trump-Xi summit.
The truce caps tariffs imposed during Trump’s second term at about 20% and is due to expire on November 10. Its continuation, revision or replacement could become the most practical outcome of the New York discussions, even if the AI portion produces only a statement of intent.
Greer said the administration would monitor China’s implementation of recent commitments, seek better access for American farmers, manufacturers and workers, and optimize trade in non-sensitive goods. His office said the meeting is part of preparations for the leaders’ summit rather than a standalone negotiation with a published settlement.
Both Governments Are Managing a Narrow Window
Washington is seeking progress on several fronts at once: mineral flows, tariff arrangements, fentanyl-related trade, agricultural purchases and access for American businesses. China is sending He with a delegation of Chinese companies for economic and trade consultations, according to China’s Ministry of Commerce as cited by Reuters.
The breadth of the agenda creates room for trades across issues, but it also makes a major deal difficult. AI safety discussions touch national security and technology controls, while critical minerals and tariffs affect companies that need predictable shipments now. Agreements on one subject could remain separate from restrictions on another.
Wendy Cutler, policy director for the Asia Society in Washington, told Reuters that expectations for major new deals were low given the short preparation period. She described the talks as an effort to manage the relationship and check whether the existing truce is being honored.
The next concrete markers will be whether the two sides extend the tariff truce, document improved flows of Chinese rare-earth magnets and establish a formal channel for AI-risk discussions. Until those details appear, the meeting is a diplomatic holding operation: AI cooperation is being tested inside a negotiation still governed by tariffs, export restrictions and competition over the materials that make advanced technology possible.