The United States and China are engaged in intense negotiations over the extension of a trade truce, Iran sanctions, and artificial intelligence (AI) safety, just two days before a scheduled summit between President Donald Trump and President Xi Jinping.
U.S. Treasury Secretary Scott Bessenet described his meeting with Chinese Vice Premier He Lifeng on September 21 as "very successful" during an interview with CNBC. He noted that the focus of the discussions was the U.S.-China tariff truce set to expire on November 10. Bessenet stated, "Since last fall, the relationship between the two countries has remained stable, and we will maintain that stability."
However, an agreement on extending the trade truce has not yet been reached. U.S. Trade Representative Jamison Greer mentioned in a Bloomberg TV interview that both sides still have differing views on the conditions for an extension. He suggested a possible extension period of three to six months but emphasized that "no agreement has been made on the extension," indicating that further negotiations are necessary. Greer also mentioned that he is advocating for a phased agreement rather than a long-term extension, stating, "We need to assess China's compliance on a case-by-case basis," and noted that issues like rare earth export controls have created uncertainties. He added, "It would be somewhat naive to say that we fully trust each other at this point." Nonetheless, U.S. officials believe both sides desire an extension.
Specific measures to lower tariffs were also discussed. The U.S. is seeking to increase Chinese exports of agricultural products, energy, and medical devices, while also considering the expansion of imports of consumer goods from China.
The issue of Iran was another point of negotiation. Bessenet stated in the interview that he had positive discussions with Chinese financial authorities regarding the enforcement of Iran sanctions, noting that China is "very engaged" with U.S. economic pressure on Iran. He specifically mentioned discussions with China regarding the strengthening of sanctions against Iranian airlines.
In the AI sector, both sides are exploring active cooperation. They agreed to consider an "incident notification mechanism" to inform each other in the event of significant AI incidents that could impact national security. Bessenet emphasized the need for increased transparency between the world's top two AI powers, the U.S. and China. The two countries plan to hold a follow-up meeting on AI safety in Shenzhen, China, in two months. However, Greer noted that the discussions did not cover whether the U.S. would ease export controls on advanced AI semiconductors to China.
Meanwhile, the U.S. and China are currently engaged in practical coordination following an eight-hour meeting on September 20. It remains unclear whether Bessenet and Vice Premier He will meet again on September 22 or 23.
* This article has been translated by AI.
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