US, China hold trade and AI talks ahead of Trump-Xi summit

Top US and Chinese officials held “candid, in-depth and constructive” discussions on trade, economic issues and artificial intelligence in New York on Sunday, seeking to lay the groundwork for a meeting between US President Donald Trump and Chinese President Xi Jinping later this week.

The talks brought together Chinese vice-premier He Lifeng, US treasury secretary Scott Bessent and US Trade Representative Jamieson Greer. The discussions focused on bilateral economic and trade issues, as well as the implementation of understandings reached during earlier negotiations.

China’s state-run Xinhua news agency said the officials discussed issues of common concern while adhering to the principles of mutual respect, peaceful coexistence and win-win cooperation. AI-related issues were also discussed, although Xinhua did not provide details.

The US side proposed establishing a new AI safety notification mechanism under which Washington and Beijing could alert each other about AI-related incidents that rise to the level of national security concerns. Bessent said greater transparency between the world's two leading AI powers was important, with the proposal expected to be considered by Trump and Xi at their summit.

The officials also moved to operationalise further discussions on tariff reductions for non-sensitive goods. The proposed framework covers products worth about $30 billion from each side, according to reports.

The New York talks come ahead of Xi’s planned visit to Washington this week. Trump and Xi are scheduled to meet on September 24, with trade, AI, supply chains and other bilateral issues expected to feature prominently.

The discussions take place amid continuing tensions over tariffs and China’s purchases of Russian energy. The Trump administration has sought expanded sanctions and tariffs targeting Russia and countries buying its energy exports, while Beijing has rejected the use of unilateral sanctions to interfere with its normal trade relations.

China has maintained that its economic and trade cooperation with other countries is based on equality and mutual benefit and has opposed what it calls unilateral sanctions lacking a basis in international law.

At the same time, Washington and Beijing are seeking to keep trade negotiations moving. The latest consultations aim to work towards reciprocal tariff reductions covering non-sensitive products, while several contentious issues remain unresolved.

The economic talks also come as Washington intensifies its focus on the global AI race. Trump announced on Saturday that he plans to create an “AI Force”, modelled on the US Space Force, and appoint an AI “czar”. He said the administration would seek to advance the technology while monitoring potential misuse through existing legal mechanisms.

The announcement adds another dimension to the US-China technology competition, with AI emerging as a key issue in relations between the two countries. The New York discussions indicate that, despite broader strategic and trade tensions, Washington and Beijing are exploring channels for cooperation on AI-related risks.

With PTI inputs