US and China kick off New York talks ahead of Trump - Xi summit

What happened in New York

US and Chinese teams met in midtown Manhattan to set the stage for a White House meeting between Donald Trump and Xi Jinping. Shortly after 10 a.m. in New York, He Lifeng, US Trade Representative Jamieson Greer, and Li Chenggang, China's lead trade negotiator, headed into JPMorgan Chase & Co.'s offices where the talks are taking place. Scott Bessent arrived a bit after 10:30 a.m. and told reporters he was looking forward to a constructive conversation.

The current meeting follows Bessent and He's last in-person session near Seoul about four months ago, held just ahead of Trump's trip to Beijing in May. On Thursday, Trump is slated to host Xi at the White House, marking the first time in more than ten years that Xi has undertaken a state visit to Washington.

The agenda and the clock

Negotiators are set to tackle matters of trade, investment, AI, and the war in Iran. A key issue is the trade ceasefire that led both sides to reduce tariffs and export restrictions, which is slated to end in November. People familiar with the discussions said the US has postponed an announcement on new tariffs linked to allegations of other countries' surplus manufacturing capacity until after these meetings.

Bloomberg previously reported that Washington and Beijing have been working to lower duties on US energy and farm goods as part of a broader plan to ease barriers on $30 billion of products from each side through a Board of Trade mechanism that began earlier this year.

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The AI flashpoint

Since the leaders met in May, AI has moved to the center of the rivalry. As described by officials in the Trump administration, by US security agencies, and by top Silicon Valley AI firms, Chinese companies have extensively relied on American models to build their own, narrowing the gap with the US at a rapid pace. Beijing has called those allegations baseless and warned it will respond if Washington targets Chinese AI firms. Chinese officials have also criticized calls from US tech leaders to slow AI work on safety grounds, with the foreign ministry labeling such efforts as fear mongering.

Bessent recently warned that "there is no day after tomorrow" if China wins the AI race, and, in comments provided to Axios last week, added that "we are open to discussions on avoiding shared risks and avoiding bifurcation of our two systems." Michael Kratsios, the White House science and technology adviser, said on Fox News Sunday that "the key thing that we want to talk to them about is avoiding shared risks, and that's something that I think we can have a fruitful conversation on."

Why it matters for your money

Tariffs, export rules, and AI policy are not just headlines. They filter into prices, supply chains, and which companies get a tailwind or headwind. If the truce holds and barriers come down, that can ripple across energy, agriculture, and tech.

If talks stall, the tariff drumbeat gets louder. Either way, this week's New York meetings are a tell on where the world's two biggest economies aim to take trade and tech next.

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