US-China talks: 7 key issues Scott Bessent and He Lifeng will address ahead of Trump-Xi summit | Today’s news
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold talks in New York on Sunday, September 20, ahead of President Donald Trump’s meeting with Chinese President Xi Jinping in Washington on September 24.
Discussions are expected to focus on trade, tariffs, artificial intelligence, rare earths and economic ties, while the Iran war and its impact on energy supplies has emerged as another major sticking point.
The meeting comes as Washington and Beijing seek to preserve a trade truce that expires in November and prevent new tensions from spilling over into the broader relationship. US Trade Representative Jamieson Greer is also expected to attend.
Trade and tariffs
One of the central topics will be the tariff truce.
The US and China are discussing ways to preserve the current arrangement and possibly extend it beyond its November expiration. Washington and Beijing are also working to reduce tariffs on selected non-sensitive goods, including energy and agricultural products.
Talks could also touch on proposed new US tariffs related to overcapacity in Chinese industry and concerns about forced labour.
For Washington, the immediate goal is to secure better market access for American businesses, farmers and manufacturers while monitoring China’s implementation of existing commitments.
Artificial intelligence
Artificial intelligence has emerged as a major new area of competition between Washington and Beijing.
Bessent said the U.S. is open to discussions with China about shared AI risks and avoids bifurcating the two countries’ technology systems. His discussions with Heem are expected to include both open- and closed-scale AI models, as well as possible safeguards against abuse.
However, the two countries remain divided over advanced chips, AI technology and accusations of technology copying. Washington has restricted China’s access to some advanced semiconductor technologies, while Beijing has criticized US efforts to limit its technological development.
Rare Earths and Critical Minerals
Another key point of negotiation is the rare earths.
China is a major supplier of rare earth materials and magnets used in electronics, automobiles, defense equipment and other technologies. Washington wants a more robust approach, while Beijing has used export controls as leverage in previous trade talks.
Reuters reported that restrictions on the supply and export of rare earths are expected to feature in Bessent’s discussions with He.
This issue is particularly important because a disruption in the supply of rare earth magnets can affect global manufacturing and technology supply chains.
The Iran War and China’s Oil Supply
The conflict involving Iran has added an unexpected geopolitical dimension to the US-China talks.
China is a major buyer of Iranian oil, while the Trump administration has stepped up pressure on Tehran and financial institutions involved in Iran’s trade. Washington is also seeking greater Chinese cooperation in enforcing sanctions.
The disruption around the Strait of Hormuz further complicated the situation by affecting energy flows to China and raising concerns about refinery operations.
For Beijing, a prolonged interruption of Iranian oil supplies could create additional energy and economic pressures. For Washington, China’s purchases of Iranian oil remain a major sanctions concern.
Fentanyl related business
The flow of fentanyl chemical precursors from China to the US is another issue that should come up in the broader Trump-Xi discussions.
Reuters reported that the two sides are expected to discuss efforts to curb the flow of precursor chemicals used to make fentanyl.
The issue has previously been part of negotiations between Washington and Beijing and could provide another area for potential cooperation.
Arms sales to Taiwan and the US
Taiwan is likely to be a more difficult topic at the leaders’ summit than at the economic talks.
Chinese officials have indicated that Taiwan will be a major problem for Beijing, particularly the planned US arms package for the island. The Trump administration has delayed a major arms sale to Taiwan, which Trump previously called a bargaining chip.
Beijing strongly opposes US arms sales to Taiwan, while Washington upholds longstanding commitments to the island’s defense.
Cars and BYD
The Chinese electric vehicle manufacturer BYD could also become part of broader discussions.
Chinese officials are considering including BYD in the trade delegation accompanying Xi to Washington. Trump suggested that Chinese automakers could potentially make vehicles in the U.S. if they employed American workers.
The issue comes amid US tariffs and broader concerns in Washington about China’s industrial capacity and the competitiveness of Chinese electric vehicles.
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