With just days until President Donald Trump and Chinese President Xi Jinping meet in Washington, D.C. for a high-stakes summit, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded eight hours of talks in New York on Sunday. The meeting, which included top trade officials from both sides, was described by Bessent as “very successful”—a hopeful sign as the world’s two biggest economies try to maintain a fragile peace.
The September 24 summit comes at a critical moment. The current US-China trade truce, which has kept a lid on heightened reciprocal tariffs, is set to expire November 10. This deal, brokered after a bruising trade war, includes Chinese commitments on rare-earth exports—vital for electronics—and US agricultural purchases. In exchange, the Trump administration suspended plans for higher tariffs on Chinese goods. But with the truce’s clock ticking, both sides face pressure to hammer out new terms or risk a return to tit-for-tat tariffs.
AI, Trade, and Big Names at the Table
Artificial intelligence is also high on the agenda. Sunday’s talks reportedly included “frank, in-depth, and constructive exchanges” on AI, according to Chinese state media. The upcoming summit will see not just politicians, but also some of the world’s top business and tech leaders at the table. JPMorgan Chase CEO Jamie Dimon, Citigroup chief Jane Fraser, OpenAI’s Sam Altman, and Nvidia’s Jensen Huang are all set to attend a state dinner during Xi’s visit—a sign of how intertwined technology and trade have become.
Trump, who once called China a “menace” to the US economy, now appears to be rolling out the red carpet for his Chinese counterpart. He even readied a helipad on the White House South Lawn, though he reportedly lamented that his ballroom isn’t finished in time for the event. This marks Trump’s second reciprocal state visit with Xi this year; the two leaders could meet twice more at international gatherings before 2027.
Trade Imbalance Shrinks, But Tensions Simmer
The US trade deficit with China in goods has declined compared to the same period in 2025, according to recent Census Bureau figures. However, officials have noted an uptick in Chinese goods being routed through third countries like Vietnam, likely to skirt existing tariffs. With rare earth minerals still largely under China’s control, the US remains wary of supply chain vulnerabilities.
As the November 10 deadline looms, all eyes are on Washington to see if the Trump-Xi summit can extend the delicate trade peace—or if the world’s two largest economies are headed for another showdown.
