US and China open high-level talks in New York ahead of Trump-Xi summit

Top economic officials from the United States and China have begun high-level talks in New York City ahead of a meeting between President Donald Trump and President Xi Jinping later this week. The discussions started on Sunday morning at JPMorgan Chase's Manhattan headquarters and are aimed at clearing the way for possible agreements on trade, artificial intelligence and critical minerals. US Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng and US Trade Representative Jamieson Greer are taking part.

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The talks come four days before Trump is due to host Xi at the White House, with both sides seeking to ease tensions between the world's two largest economies. Bessent said on arrival that he was looking forward to "focused, fulsome and constructive talks" that would help set the stage for the leaders' meeting. The agenda includes a fragile trade truce due to expire on November 10, adding pressure to produce at least some progress before the deadline.

The current truce was reached in Busan, South Korea, last November after a tariff fight that briefly pushed duties into the triple digits. Under that arrangement, US tariffs on Chinese goods were capped at about 20 percent. Washington has also been pressing Beijing over supplies of rare-earth magnets and other critical minerals, which are important for industries ranging from cars to advanced semiconductors.

A senior US official said on Friday that China's performance on restoring the flow of critical minerals had "not been up to par". Artificial intelligence has emerged as a newer issue in the negotiations, alongside the longer-running trade disputes. Bessent has said the two sides could discuss AI "guardrails" intended to address shared risks, including the possibility of powerful models falling into the hands of malign non-state actors.

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The talks are expected to cover both open- and closed-weight AI models, reflecting the growing commercial and strategic importance of the sector in US-China relations. The meeting also carries wider significance because it comes at a time when both governments are trying to manage competition without allowing it to spill into a broader economic rupture. China's role in the supply of critical minerals has become a major point of leverage, while the United States continues to frame the issue as one of supply security for key industries.

The inclusion of AI in the agenda suggests the negotiations are moving beyond tariffs and into areas that could shape future technology rules and market access. What remains unclear is whether the New York talks will produce any immediate breakthrough before the Trump-Xi meeting later this week. It is also not yet clear how far the two sides are prepared to go on trade, minerals or AI safeguards.

The outcome of the discussions will be watched closely for signs of whether the fragile truce can be extended and whether the leaders' meeting can reduce pressure between the two economies.

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