US Treasury’s Bessent to discuss AI, rare earths with China’s vice-premier

US Treasury Secretary Scott Bessent is set to meet with Chinese Vice-Premier He Lifeng in New York City this weekend, with discussions expected to focus on artificial intelligence (AI), rare earths, and broader economic matters. The US and China are pivotal global forces in AI development and technology adoption. Rare earths are critical for manufacturing technology.

Bessent, along with US Trade Representative Jamieson Greer, will meet with He on Sunday, ahead of a summit between US President Donald Trump and Chinese President Xi Jinping on September 24 in Washington. The administration aims to maintain balanced trade with China, monitor the implementation of recent agreements, and improve market access for American farmers, manufacturers, and workers.

Bessent anticipates discussing both open- and closed-weight AI models, with the latter being more affordable for US companies. Bessent has called for the establishment of AI safety "guardrails" to prevent powerful models from falling into the hands of non-state actors with malicious intent. The meetings in New York are expected to address potential extensions of the tariff truce, which expires on November 10, and the flow of critical minerals and rare-earth magnets from China.

Additionally, discussions may revolve around curbing the influx of fentanyl precursor chemicals into the US. While expectations for major new deals are low, the summit serves as an opportunity to ensure compliance with existing trade truces.