US-China talks target AI guardrails, tariffs before summit

High-level economic talks precede presidential meeting

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet Sunday in New York to negotiate issues spanning artificial intelligence regulation, trade tariffs, and critical mineral supplies, according to Reuters. The discussions will take place at JPMorgan Chase's Manhattan headquarters beginning at 10:30 a.m. ET, with US Trade Representative Jamieson Greer also participating.

The daylong session aims to prepare potential agreements for a summit between Presidents Donald Trump and Xi Jinping planned for later this week in Washington.

Trade truce and agricultural commitments on the agenda

Officials will address the US-China trade truce currently set to expire November 10. Previous commitments from China include increasing purchases of US agricultural products by $17 billion annually and acquiring more than 200 Boeing aircraft—agreements that emerged from the presidents' May meeting in Beijing.

Analysts cited by Reuters anticipate incremental progress rather than major breakthroughs, with the focus on preventing renewed trade tensions through targeted measures on non-strategic goods.

Critical minerals supply remains contentious

Critical minerals will feature prominently in the negotiations. While China agreed under an earlier trade arrangement to restore supplies of rare-earth magnets and other strategic materials to US and global markets, a senior US official stated Friday that Beijing's performance has "not been up to par."

The shortfall highlights ongoing tensions over supply chain security for materials essential to defense, renewable energy, and advanced manufacturing sectors.

AI regulation emerges as new negotiating front

Artificial intelligence will represent a new dimension in US-China economic discussions. Bessent indicated talks would address both open-weight and closed-weight AI models, with the goal of establishing guardrails to prevent powerful AI systems from reaching malign non-state actors.

The timing reflects growing adoption of Chinese open-weight AI models among US companies, driven partly by cost advantages compared to closed-weight systems from OpenAI and Anthropic. This market dynamic adds complexity to national security considerations around AI technology transfer.

Why it matters

These talks signal both nations' recognition that AI governance requires bilateral coordination even amid broader strategic competition. The inclusion of AI alongside traditional trade issues marks a shift in how economic statecraft must address emerging technologies. For businesses operating across both markets, the outcome could determine whether AI development follows divergent regulatory paths or maintains some degree of interoperability—with significant implications for global technology standards and commercial strategy.

China's Commerce Ministry confirmed He will lead a delegation of Chinese companies participating in economic and trade consultations connected to the summit. Details of Sunday's discussions were first reported by Reuters.