U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng opened high-level talks in New York on September 20, 2026, with artificial intelligence, trade tariffs and critical minerals at the center of discussions ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping.

The talks are taking place at JPMorgan Chase’s headquarters in Manhattan and are aimed at easing economic tensions between the world’s two largest economies before the current U.S.-China trade truce expires in November. U.S. Trade Representative Jamieson Greer is also participating.

AI Becomes a Major U.S.-China Issue

Artificial intelligence has become one of the most important areas of competition between Washington and Beijing.

The United States and China are both investing heavily in advanced AI systems, semiconductors and computing infrastructure, while also debating how powerful AI technologies should be controlled and used safely.

Reuters reports that the current discussions include possible safeguards around AI, including concerns about open-weight models and broader national-security risks.

Technology restrictions remain another major issue. The United States has imposed limits on exports of advanced chips and related technology to China, while Beijing has criticized some of those restrictions.

Tariffs and Trade Truce Under Discussion

Trade remains another central issue.

The two sides are discussing whether the current tariff truce can be extended and whether duties on some non-strategic goods could be reduced.

Washington is also seeking stronger Chinese purchases of U.S. products, including agricultural goods and potentially Boeing aircraft.

China, meanwhile, has pushed for easing some U.S. technology and trade restrictions.

The negotiations are important because any breakdown could lead to renewed tariffs and additional pressure on businesses, consumers and global markets.

Critical Minerals and Rare Earths Take Center Stage

Critical minerals are another major point of tension.

Rare-earth materials are essential for products ranging from smartphones and electric vehicles to advanced military equipment and semiconductor manufacturing.

China plays a dominant role in global rare-earth processing and supply.

The United States has been pushing for more reliable access to these materials, while concerns remain over whether Chinese export restrictions could disrupt U.S. manufacturers.

This makes critical minerals one of the most strategically important parts of the talks.

Talks Set Stage for Trump-Xi Meeting

The Bessent-He Lifeng discussions are also intended to prepare for a meeting between Trump and Xi.

Reuters reports that the two leaders are expected to discuss a much wider range of issues, including:

• trade and tariffs
• artificial intelligence
• Taiwan
• critical minerals
• fentanyl precursor shipments
• technology restrictions
• broader economic cooperation.

The outcome could influence global markets, technology companies and supply chains well beyond the United States and China.

Why This Matters

The U.S.-China relationship affects almost every major part of the global economy.

A breakthrough could reduce uncertainty around trade, AI and manufacturing.

A failure to reach agreements could instead lead to:

higher tariffs, tighter technology restrictions, supply-chain disruption and renewed pressure on global businesses.

For now, both sides appear focused on preventing economic tensions from escalating further.

The Bottom Line

The latest U.S.-China talks show how much the economic rivalry between the two countries has changed.

Trade is still important, but the competition now increasingly revolves around AI, advanced technology and access to critical minerals.

The New York discussions between Scott Bessent and He Lifeng could therefore shape the agenda for the upcoming Trump-Xi meeting — and potentially influence global technology, trade and financial markets for months to come.

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