US and China open talks as trade truce nears expiry

US Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng and US Trade Representative Jamieson Greer have begun high-level talks in New York ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping on 24 September.

The discussions are focused on possible arrangements covering trade, artificial intelligence and critical minerals, as Washington and Beijing seek to manage tensions between the world’s two largest economies. Tensions involving Iran are also expected to feature.

A central issue is the US–China trade truce, reached in Busan last November after tariffs briefly rose to triple-digit levels. The agreement capped US tariffs on Chinese goods at about 20 per cent and is due to expire on 10 November.

Washington is also pressing Beijing over the supply of rare-earth magnets and other critical minerals used in industries including cars and advanced semiconductors. A senior US official said China’s implementation of commitments to restore mineral flows had not been adequate.

AI discussions may include safeguards addressing shared risks, as well as open- and closed-weight models. US officials have said they are open to discussions aimed at preventing powerful systems from reaching malicious non-state actors, but no agreement has been established.

Analysts cited in the source report expect limited progress, with containing tensions or extending the truce considered more likely than a broad breakthrough. The talks form part of a series of meetings between the three officials over the past 16 months intended to prepare possible agreements before the planned leaders’ meeting.