Full Breakdown
U.S.–China Talks on AI, Tariffs and Critical Minerals Set the Stage for Trump-Xi Summit
By Drooid · · How we work
Core Negotiations in New York
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet at JPMorgan Chase headquarters on September 20, joined by U.S. Trade Representative Jamieson Greer. The agenda includes:
- The U.S.–China trade truce that expires on November 10.
- Flows of Chinese rare-earth magnets and other critical minerals deemed “insufficient.”
- “Guardrails” for artificial-intelligence (AI) systems, covering open-weight and closed-weight models.
- Extending tariff reductions on non-strategic goods through a “Board of Trade” mechanism and addressing investment issues.
The talks are meant to lay groundwork for the presidential summit between President Donald Trump and President Xi Jinping on September 24 in Washington.
Background & Context
The New York meeting follows a May 2024 Beijing summit where the leaders pledged:
- $17 billion in annual U.S. agricultural purchases by China.
- Purchase of more than 200 Boeing aircraft.
These commitments were part of a trade truce first reached in Busan (Nov 2025), which capped U.S. tariffs on Chinese goods at roughly 20 %. The Supreme Court later struck down those tariffs; the Trump administration has reinstated a 12.5 % tariff on Chinese goods linked to forced-labor allegations and is probing “excess industrial capacity” in China.
Data & Statistics
| Item | Figure | Source |
|---|---|---|
| Forced-labor tariff | 5 % (additional to 12.5 % rate) | senior U.S. official |
| Restored tariff cap | ? 20 % | Reuters |
| Annual agriculture pledge | $17 billion | May 2024 summit |
| Boeing aircraft pledge | > 200 | May 2024 summit |
| Potential tariff-reduction estimate | $30 billion | Brookings senior fellow |
| Trade-truce expiration | Nov 10 | Date ledger |
Official Statements & Responses
- Jamieson Greer emphasized a “balanced trade” approach, pledging to monitor recent commitments and improve market access for American farmers, manufacturers and workers.
- He Lifeng will lead a delegation of Chinese companies for economic and trade consultations, mirroring a U.S. CEO delegation that visited Beijing in May.
- President Trump said the upcoming state visit will be “very good” and that the two leaders “get along well.”
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,” — Scott Bessent
- “We're going to have a very good meeting. We're gonna have a meeting. We get along well, we're doing very well with China,” — Donald Trump
Conflicting Reports & Gaps
China’s Ministry of Commerce announced that He Lifeng will head a business delegation to the United States, implying readiness to engage on mineral-supply issues. No independent data on actual export volumes has been released, leaving compliance with the 2025 truce unclear.
What’s Next
- September 24 – Trump and Xi meet in Washington, with expectations of modest “small-gain” outcomes.
- November 10 – The current trade truce expires; both sides are expected to negotiate an extension or replacement during the summit.
The New York talks therefore serve as a technical pre-lude, aiming to keep the broader U.S.–China relationship stable while addressing AI safety, rare-earth supply and tariff policy.