U.S.-China Talks Make Progress Ahead of Trump-Xi Summit

Bessent met He alongside U.S. Trade Representative Jamieson Greer, with artificial intelligence emerging as a major topic. The U.S. proposed establishing a formal “U.S.-China AI Dialogue” as well as a notification mechanism for AI-related incidents that could rise to the level of national security concerns. Bessent said greater transparency was important between what he described as the world’s two leading AI powers.

The proposal comes amid growing debate in Washington over AI safety and national security. The U.S. and China are competing for leadership in advanced technologies, while executives from major AI companies have raised concerns about increasingly capable systems. The Trump administration has generally favored voluntary safeguards and measures focused on national security rather than broad mandatory regulation.

Trade was another major focus of the discussions. Greer said the two countries have “operationalized” the U.S.-China Board of Trade, intended to facilitate negotiations by identifying groups of products that could be treated separately if future trade measures are introduced. Potential categories include Chinese consumer and low-tech goods alongside U.S. energy, agricultural products and medical devices.

The talks set the stage for Xi’s first visit to Washington during Trump’s second term. Trump traveled to Beijing earlier this year as tensions between the two largest economies remained elevated. The Sept. 24 summit is expected to provide another opportunity for the leaders to address areas of competition while seeking ways to manage economic friction.

Business and technology leaders are also expected to feature prominently during Xi’s visit. JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser are expected to attend a state dinner, alongside OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang. Their presence highlights the importance of finance, AI and advanced technology to the broader U.S.-China relationship.

Trade and tariffs remain among the most immediate issues facing the two governments. Washington’s suspension of heightened reciprocal tariffs on Chinese imports is currently scheduled to expire on Nov. 10. The existing truce includes Chinese commitments involving rare-earth exports and purchases of U.S. agricultural products, while Washington has reduced some tariffs and temporarily suspended higher duties.

The Trump-Xi summit will therefore take place at a critical point for both economic and technological relations. The proposed AI dialogue could create a new channel for managing risks in an increasingly competitive field, while trade negotiations will determine whether the current tariff truce can be extended or reshaped. The outcome could have implications well beyond the two countries, given their central roles in global trade, technology and supply chains.