Full Breakdown
US Treasury Secretary Scott Bessent to Lead AI and Rare-Earth Talks with China
By Drooid · · How we work
Core Event: High-Level AI and Trade Talks in New York
- Who: Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng.
- What: Meetings to discuss artificial-intelligence models (both open- and closed-weight), rare-earth minerals, the tariff truce, and other economic issues.
- When: The weekend of September 16-17, 2026, with a possible extension to September 21.
- Where: New York City, United States.
- Why/How: The talks are preparatory to a scheduled U.S.–China summit on September 24, 2026, between President Donald Trump and President Xi Jinping.
Background & Context
- AI competition: The United States and China dominate advanced AI development, prompting concerns about safety, liability, and the risk of a bifurcated global AI ecosystem.
- Trade backdrop: A tariff truce that caps duties at roughly 20 % is set to expire on November 10. The United States has reinstated a 12.5 % tariff on Chinese goods over forced-labour allegations and is pursuing a separate investigation into excess industrial capacity in China.
- Rare-earths: China sharply reduced exports of rare-earth magnets and other critical minerals in 2025, making supply-chain security a priority for U.S. manufacturers.
Official Statements & Responses
- He added that “the best way to guarantee safety is that the creators are liable for what they build and generate,” rejecting any request from AI labs for liability exemptions.
- Chinese officials have warned against “fear-mongering” and urged an “open, inclusive environment” rather than “malicious competition” in the AI arena.
Data & Statistics
- The tariff truce caps duties at about 20 % and expires on November 10.
- A 12.5 % tariff on Chinese goods has been restored for forced-labour concerns.
- Rare-earth magnets and other critical minerals from China were severely curtailed in 2025, prompting current negotiations to improve flow.
Why It Matters / Impact
- Cooperation on AI safety could shape global standards that affect both U.S. developers and Chinese competitors, influencing market dynamics and national security.
- Extending the tariff truce or securing rare-earth supplies would bolster supply-chain stability for U.S. electronics, defense, and clean-energy industries.
- The Treasury’s stance on AI liability may set a precedent for how emerging technologies are regulated worldwide.
Verbatim Quotes
- “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,” — Treasury’s Bessent, US treasury secretary
- “If anything, it’s an exercise in kind of managing the relationship and ensuring that the elements in the truce are actually being lived up to,” — Wendy Cutler
- “The best way to guarantee safety is that the creators are liable for what they build and generate,” — Treasury’s Bessent, US treasury secretary
- “Our mandate is with the financial sector,” — Treasury’s Bessent, US treasury secretary
What's Next
- The technical “working” level meetings could continue through September 21, after which attention will shift to the September 24 summit in Washington.
- Treasury officials are expected to finalize rules that may allow U.S. pharmaceutical firms to invest in Chinese drug development, as reported on September 18.