Senior economic officials from the U.S. and China sat down Sunday for talks meant to smooth the path toward a much bigger meeting later this week between Presidents Trump and Xi Jinping.
Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led the discussions, which also included Jamieson Greer, Trump’s top trade official. The talks are expected to run all day at JPMorgan Chase’s headquarters in New York, according to a report from AFP.
Setting the Stage for a Bigger Summit
Sunday’s meeting is being treated as groundwork ahead of a planned White House sit-down between Trump and Xi scheduled for Thursday, bringing together the leaders of the world’s two largest economies.
Both sides are hoping to ease ongoing tensions across several fronts, including trade, technology, and broader strategic concerns. Among the specific issues on the table are a possible extension of a trade truce set to expire in November, along with discussions around establishing guardrails for artificial intelligence development.
Bessent spoke to reporters as he arrived for the talks, saying he was looking forward to focused, thorough and productive discussions that would help set the tone for the eventual meeting between the two leaders.
Rare Earths and Critical Minerals in Focus
U.S. officials also plan to push for continued access to rare earth magnets and critical minerals, materials that American manufacturers depend on heavily. A source familiar with the discussions told AFP that Sunday’s talks would cover artificial intelligence, trade, rare earths and other related topics, building on progress made during earlier rounds of negotiations between the two countries.
According to the source, working level discussions could continue into Monday as officials work through the details.
Earlier negotiations between the two nations had already resulted in China agreeing to purchase American agricultural goods, and whether Beijing follows through on those commitments is expected to remain a point of scrutiny during these latest talks.
AI Cooperation on the Agenda
On the topic of artificial intelligence specifically, Bessent said in an earlier statement that the U.S. remains open to discussions focused on avoiding shared risks and preventing a complete split between the two countries’ technological systems.
Iran Also Looms Over the Talks
Another complicating factor is U.S. economic pressure on Iran, as Washington’s conflict with Tehran stretches into its seventh month. China remains one of Iran’s most important economic partners, purchasing much of the country’s oil output while also serving as a key diplomatic ally.
Low Expectations for the Trump-Xi Summit
Despite all the groundwork being laid, analysts aren’t expecting major breakthroughs from the upcoming Trump-Xi meeting. Kurt Campbell, a former U.S. deputy secretary of state, said the most realistic short term outcome would simply be a continued truce lasting through the rest of the year.
Campbell, who now serves as chairman of The Asia Group consultancy, also predicted that Trump would likely announce plans to meet with Xi on two additional occasions following this week’s summit.
Those future meetings are expected to include a sit-down at the Asia-Pacific Economic Cooperation forum in Shenzhen, China, in November. Trump is also expected to invite Xi to the G20 summit in December, which is set to be held at his Doral resort in Miami.