Archive · 21 Sep 2026
Bessent and He Lifeng Prepare Trade Agenda Before Trump-Xi Summit
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in New York before their presidents’ planned meeting.
Donald Trump and Xi Jinping are expected to meet in Washington on September 24.
The countries want to keep a temporary trade agreement from ending in November.
They may discuss tariffs, which are extra charges on goods from another country.
They will also talk about artificial intelligence and advanced computer chips.
Rare-earth materials are important because factories use them in many products.
The United States is concerned about China buying oil from Iran and about problems near an important shipping route.
The countries may also discuss fentanyl chemicals, Taiwan, and Chinese carmaker BYD.
The two sides are looking for cooperation but still disagree about trade, technology, sanctions, and Taiwan.
Scott Bessent and He Lifeng met in New York on September 20, 2026, ahead of the planned Trump-Xi summit.
The talks covered extending the trade truce, lowering selected tariffs, market access, and possible Chinese purchases of US goods.
Artificial intelligence safeguards, advanced chips, technology controls, rare-earth supplies, and critical minerals were also expected to feature.
US pressure over China’s purchases of Iranian energy and disruptions around the Strait of Hormuz added an energy dimension.
The broader discussions may include fentanyl precursor chemicals, Taiwan, planned US arms sales, and possible BYD participation in a business delegation.
- Who
- US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led the economic talks, with US Trade Representative Jamieson Greer expected to participate; Donald Trump and Xi Jinping are expected to attend the later summit.
- What
- The discussions concern trade and tariffs, artificial intelligence, advanced chips, rare earths, Iranian energy, fentanyl precursor chemicals, Taiwan, arms sales, and possible Chinese investment or manufacturing in the United States.
- When
- Bessent and He met on September 20, 2026; the Trump-Xi summit is planned for September 24, and the trade truce expires in November.
- Where
- The economic talks took place at JPMorgan Chase's Manhattan headquarters in New York, while the leaders' summit is planned for the White House in Washington.
- Why
- Washington and Beijing are seeking to preserve their trade truce, reduce tensions, and address disputes involving market access, technology, critical minerals, energy, sanctions, and Taiwan.
United States position
China position
Trade and market access
United States position
The United States wants greater access for its businesses, farmers, and manufacturers, lower barriers for selected goods, and compliance with existing Chinese commitments.
China position
China is negotiating to preserve the trade arrangement and reduce pressure from US tariffs, including proposed tariffs related to industrial overcapacity and forced labor.
Artificial intelligence and chips
United States position
The United States is open to discussing shared AI risks and safeguards while restricting China's access to some advanced semiconductor technology.
China position
China has criticised US efforts to limit its technological development, and the countries remain divided over advanced chips, AI technology, and alleged technology copying.
Rare earths and Iranian energy
United States position
Washington wants more reliable access to rare-earth materials and greater Chinese cooperation with sanctions enforcement involving Iranian oil.
China position
China relies on Iranian energy supplies and has previously used rare-earth export controls as leverage in trade negotiations, creating concerns about energy and manufacturing disruptions.
Taiwan and arms sales
United States position
The United States maintains longstanding commitments relating to Taiwan's defense and is considering a weapons package for the island.
China position
China strongly opposes US arms sales to Taiwan and has indicated that Taiwan will be a major concern in the leaders' discussions.
- Economic talks
- Scott Bessent and He Lifeng met on September 20, 2026, at JPMorgan Chase's Manhattan headquarters.
- Leaders' summit
- Donald Trump and Xi Jinping are expected to meet in Washington on September 24.
- Trade truce
- The existing arrangement is scheduled to expire in November, and the countries are discussing whether to extend it.
- Potential trade commitments
- Discussions may include lower tariffs on selected non-sensitive goods, $17 billion in additional annual Chinese purchases of US agricultural goods, and purchases of more than 200 Boeing aircraft.
- Technology
- The talks may cover open-weight and closed-weight AI models, safeguards against misuse, advanced chips, and technology controls.
- Critical minerals
- Rare-earth materials and magnets used in electronics, automobiles, defense equipment, and other technologies are expected to be a bargaining point.
- Iranian energy
- China is a major buyer of Iranian energy, while the United States is seeking greater cooperation on sanctions enforcement.
- Other issues
- Fentanyl precursor chemicals, Taiwan, planned US arms sales, and possible BYD participation in a business delegation may be discussed.
