• US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discuss AI and trade in preparatory talks.
• The two nations aim to finalize a notification mechanism for AI incidents affecting national security.
• Negotiations include potential tariff cuts and the extension of an expiring trade truce.
• Trump and Xi are set to meet on September 24, 2026, amid rising tensions over AI and critical minerals supply.
• Expectations for groundbreaking agreements at the summit are low, with a focus on maintaining stability.

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held extensive talks in New York, focusing on establishing key agreements on trade and artificial intelligence (AI) ahead of the upcoming summit between US President Donald Trump and Chinese President Xi Jinping. Bessent characterized the discussions as "very successful," highlighting a mutual understanding of the importance of enhancing communication regarding AI risks, which included the creation of a "notification mechanism" for incidents that could threaten national security, according to CBS News and BBC.

The talks at JPMorgan Chase's New York headquarters addressed various strategic concerns, including trade agreements and regulatory guardrails for AI development, which are crucial in mitigating perceived risks associated with the technology. Bessent and He Lifeng's discussions align with a broader agenda to operationalize a trade mechanism first discussed during Trump's earlier meetings with Xi, reported South China Morning Post and India Times.

Furthermore, discussions included the potential extension of a truce that covers tariffs, which is set to expire soon. The previous agreements have seen US tariffs on Chinese goods capped around 20%, and both countries have an interest in maintaining economic stability, noted Al Jazeera and India Times.

As the summit date approaches, both nations are vying to address a range of issues, including critical minerals needed by US manufacturers and potential Chinese purchases of agricultural products from the US. However, analysts maintain that expectations for a significant breakthrough remain tempered, focusing instead on maintaining a stable relationship amid a changing geopolitical landscape, according to Channel News Asia and Reuters.

Looking ahead to the Trump-Xi meeting on September 24, issues such as Taiwan and Iran are expected to surface, adding complexity to negotiations. While Xi's visit follows a period of robust trade growth for China, Trump's ongoing challenges at home complicate his negotiating position, as both leaders seek to navigate the relationship in a beneficial manner, as supported by insights from Channel News Asia and Bangkok Post.