US Treasury Secretary Scott Bessent described talks with Chinese counterparts as "very successful," covering artificial intelligence, trade, and investment. These discussions took place in New York with China’s Vice Premier He Lifeng and other officials, preceding a summit between Presidents Donald Trump and Xi Jinping. A key outcome was the agreement to set up a dialogue on AI, aiming for a shared understanding of its goals and threats, with plans for future meetings.
Simultaneously, US Trade Representative Jamieson Greer confirmed the operationalization of a Board of Trade, a mechanism established in May to facilitate discussions on reducing tariffs on non-strategic goods. Chinese trade negotiator Li Chenggang noted the talks were held in a positive atmosphere, and a working group is scheduled to continue discussions on Monday. The Board of Trade is expected to include consumer goods and low-tech items from the Chinese side, and energy products, agricultural goods, and potentially medical devices from the US side. This focus on non-strategic items suggests an effort to ease trade tensions in less sensitive areas.
While the tone of the discussions was constructive, market analysts suggest these outcomes are largely procedural rather than a major breakthrough, as specific tariff rates or purchase volumes have not been disclosed. Critical issues such as the US-China trade truce, set to expire on November 10, and US concerns regarding Chinese critical mineral flows, particularly rare-earth magnets, were not addressed in the reported comments. The discussions continue a pattern of pre-summit meetings between Bessent, Greer, and He Lifeng, reminiscent of the November 2025 Busan truce which capped US tariffs on Chinese goods at approximately 20%.
