U.S.-China Talks Put AI, Trade and Rare Earths at Center of Trump-Xi Summit

NEW YORK — September 20, 2026 — Senior U.S. and Chinese officials are meeting in New York on Sunday for high-level economic discussions covering artificial intelligence, trade, tariffs, rare-earth minerals and other issues that have become central to the relationship between the world's two largest economies.

U.S. Treasury Secretary Scott Bessent is scheduled to meet Chinese Vice Premier He Lifeng at JPMorgan Chase headquarters in New York, according to Reuters. The discussions come only days before Chinese President Xi Jinping is scheduled to visit Washington for a September 24 summit with U.S. President Donald Trump.

The New York meeting is expected to help prepare the ground for the leaders' discussions later in the week. While trade remains a major focus, the agenda has expanded to include artificial intelligence security, critical minerals, energy, agricultural trade and other economic issues.

Trade Truce Under Pressure

One of the most immediate issues is the future of the existing U.S.-China tariff truce.

The current arrangement is scheduled to expire on November 10. Both governments have an interest in avoiding a renewed escalation in tariffs, but significant disagreements remain over market access, industrial policy and technology restrictions.

U.S. negotiators are seeking greater access to Chinese critical minerals and other materials important to American manufacturers. Washington is also pressing Beijing on issues including trade imbalances and the flow of fentanyl precursor chemicals.

China, meanwhile, has sought relief from some U.S. technology restrictions and continues to object to restrictions affecting its access to advanced American technologies.

The two sides have also discussed possible reductions in tariffs on selected goods. Reuters reported that Washington and Beijing are discussing potential reductions involving U.S. liquefied natural gas and other areas of trade.

Artificial Intelligence Moves to the Center

Artificial intelligence has become one of the newest and most strategically important areas of U.S.-China competition.

The New York talks are expected to include AI safety and the use of so-called open-weight AI models. Officials are also considering ways to establish safeguards intended to reduce the possibility of advanced AI systems being misused.

The issue is complicated by the broader technology competition between Washington and Beijing.

The United States has imposed restrictions on China's access to some advanced semiconductor technologies, citing national-security concerns. China has developed its own AI ecosystem while expanding the use of lower-cost and open-source models.

Reuters reported that disagreements include advanced chip access, allegations surrounding the copying or distillation of AI models, and different approaches to AI regulation.

For companies developing AI systems, the outcome of the discussions could therefore have consequences beyond the two countries. Semiconductor manufacturers, cloud-computing companies, software developers and other technology businesses are closely watching the direction of U.S.-China technology policy.

Rare Earths Remain a Critical Economic Issue

Rare-earth minerals are another major point of discussion.

These materials are important for a wide range of products, including electronics, electric vehicles, renewable-energy equipment and advanced defense systems.

China has a major role in the global rare-earth supply chain, making the issue particularly important for American manufacturers seeking reliable access to the materials.

The United States has been attempting to strengthen alternative supply chains while continuing negotiations with Beijing. The two countries have previously used restrictions involving critical minerals and technology as leverage during trade disputes.

The Trump administration is seeking improved access to critical minerals, while Beijing has pressed Washington over technology restrictions affecting Chinese companies.

Energy Could Become Another Area of Cooperation

Energy trade is also appearing on the negotiating agenda.

Reuters reported that Washington and Beijing are discussing reducing or eliminating China's 15% tariff on American liquefied natural gas. A reduction could create additional opportunities for U.S. LNG exporters to sell into China, the world's largest LNG importer.

U.S. LNG exports increased during the first half of 2026, according to figures cited by Reuters from the U.S. Energy Information Administration. At the same time, geopolitical developments have reshaped global energy markets and increased competition for supplies.

Any agreement involving energy could therefore affect both bilateral trade and international energy flows.

Agriculture and Other Goods

Agricultural products are also expected to feature in the broader economic discussions.

American farmers have historically relied on China as a major overseas market for products including soybeans and other agricultural commodities. Chinese purchases of U.S. agricultural products can therefore become an important component of broader trade negotiations.

Reuters has reported that possible Chinese purchases of U.S. goods are among the issues being discussed ahead of the Trump-Xi meeting.

The discussions could also include commercial aircraft and other major U.S. exports.

The Iran and Taiwan Issues

The upcoming summit is not limited to economics.

Iran and Taiwan are expected to be among the more difficult geopolitical subjects.

The United States and China have different positions on Taiwan, and U.S. allies in Asia have been watching closely for indications of how Washington's policy might develop. Reuters reported that some U.S. allies are concerned about the possibility of changes in Washington's approach to Taiwan during negotiations with Beijing.

Iran is another complicated issue. Washington has concerns about China's economic relationship with Iran, while the broader conflict in the Middle East has created additional pressure on energy markets and international diplomacy.

These geopolitical questions could make the summit considerably more complex than a traditional trade negotiation.

A High-Profile State Visit

Xi's visit to Washington is expected to receive significant attention.

Reuters and the Associated Press report that Trump plans to personally greet Xi at Joint Base Andrews when the Chinese leader arrives. The visit is expected to include a formal ceremony at the White House and a state dinner.

Technology executives are also expected to feature prominently in the state dinner, reflecting the growing importance of technology and artificial intelligence in the U.S.-China relationship.

The guest list reportedly includes leaders from major technology companies, including Amazon, Alphabet, OpenAI, Apple, Tesla, Nvidia and Dell.

What to Watch This Week

Several developments will be closely watched as the negotiations continue:

1. The tariff truce
The two governments could discuss extending the existing pause in tariff escalation beyond its November 10 expiration.

2. Rare-earth exports
Any new arrangement governing Chinese exports of critical minerals could have implications for American manufacturers and global supply chains.

3. AI and semiconductor restrictions
Technology controls remain one of the most difficult areas of the bilateral relationship. Discussions about AI safety could occur alongside disagreements over advanced chips.

4. Energy trade
A possible reduction in China's tariffs on American LNG could provide a new channel for bilateral economic cooperation.

5. Agricultural purchases
Additional Chinese purchases of American agricultural products could become part of a broader trade arrangement.

6. Taiwan and regional security
Statements from Trump and Xi concerning Taiwan will be closely examined by governments across Asia.

What Comes Next

The New York discussions between Bessent and He are taking place at a particularly important moment. The two countries are simultaneously trying to manage their economic relationship while competing over technology, critical minerals and strategic influence.

The September 24 Trump-Xi summit could provide an opportunity for the two governments to announce agreements or establish new negotiating frameworks. However, major differences remain across trade, technology and security.

The immediate question is whether Washington and Beijing can extend their current period of relative trade stability while addressing the increasingly interconnected issues of AI, critical minerals, energy and technology.

For businesses and investors around the world, the details of any agreement could matter as much as the headline announcement. Changes to tariffs, mineral exports, semiconductor restrictions and energy trade could affect supply chains well beyond the United States and China.

For now, the New York talks are serving as an important step toward the Trump-Xi meeting, with negotiators attempting to narrow differences before the two leaders sit down in Washington on September 24.

Reporting based on Reuters, Associated Press and World Economic Forum reporting published September 18–20, 2026.

Source: Reuters reporting published September 18–19, 2026. Reuters — U.S.-China talks