US-China talks: 7 key issues Scott Bessent and He Lifeng will tackle before Trump-Xi summit

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will meet in New York ahead of President Trump's summit with Chinese President Xi Jinping. The talks will center on trade, tariffs, artificial intelligence, rare earths, and economic relations between the two nations. The Iran war and its effects on energy supplies are also seen as significant points of contention.

US Trade Representative Jamie Jamieson Greer may also participate. A trade truce, set to expire in November, is a key issue, with both sides seeking ways to maintain or extend it. Discussions may also involve reducing tariffs on certain goods, including energy and agriculture, and addressing industrial overcapacity concerns. The talks are expected to delve into the use of AI technology and potential safeguards against misuse, as well as China's rare earth export controls.

The ongoing conflict in Iran introduces a new geopolitical factor, as China is a significant buyer of Iranian oil, and the US has increased pressure on Tehran. Additionally, the flow of fentanyl precursor chemicals from China to the US will likely be discussed. The possibility of Chinese electric vehicle manufacturer BYD participating in the talks is also under consideration.