China, US Discuss AI, Investment On Second Day Of Trade Talks

Talks on Monday focused on delivering on what's been agreed by the US and Chinese lead negotiators, China's Vice Finance Minister Liao Min said in brief remarks outside the JPMorgan Chase & Co.'s headquarters in New York, where the meetings took place. Liao didn't comment when asked about discussions over any possible extension of the trade truce, and no other senior officials from either country were seen at the venue.

US Treasury Secretary Scott Bessent, China's top trade negotiator Li Chenggang and Vice Premier He Lifeng held a full day of talks on Sunday, before Xi's expected Wednesday arrival in the US.

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After the Sunday talks, Li said the meeting was conducted in a "good atmosphere" while Bessent described it as "very successful." Bessent said the two superpowers have agreed to create what he called a "US-China AI dialogue" intended to develop a common understanding of the technology's benefits and threats.

With the trade truce set to expire in November, all eyes are on whether China and the US can agree on an extension and, if an agreement can be reached, how long it will last. Speaking on Bloomberg TV on Monday, US Trade Representative Jamieson Greer said a three to six-month extension is possible, adding that there was still time to talk about the terms.

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President Donald Trump and Xi are expected to discuss issues including trade, rare earths and artificial intelligence. According to Chinese customs data, shipments of Chinese rare earth magnets to the US dropped 21% in August to 512 tons from the month before, underscoring concerns that China is still squeezing flows of the critical minerals despite last year's trade truce.