Portugal Colonial - US seeks 'AI dialogue' with China as officials set stage for Trump-Xi summit

"We just had a very successful engagement with the Chinese on trade and AI," US Treasury Secretary Scott Bessent told reporters after long talks with a team led by Chinese Vice Premier He Lifeng.

The talks are a prelude to a planned White House meeting on Thursday of the leaders of the world's two biggest economies: US President Donald Trump and Chinese President Xi Jinping.

The discussions, which also included the top US trade official Jamieson Greer, lasted around eight hours at JPMorgan Chase's headquarters in New York.

Bessant said the two sides discussed setting up a way to communicate about AI issues called the "US-China AI dialogue."

"The US has proposed that we have a notification mechanism between the two countries," Bessent said.

Such notifications are for potential "incidents," or a situation "that rises up to a national security level from AI," he said, adding that both sides have agreed to meet again.

Bessent and He also spoke one-on-one during the day, a source familiar with the matter said.

Chinese official Li Chenggang, who was elevated to a top-level international trade representative post shortly before the meetings, was present in the New York talks too. But the Chinese delegation did not address reporters.

Greer stressed Sunday it is "imperative that we are able to work together."

Both sides are looking to ease tensions on trade, technology and other strategic concerns. These include the possible extension of a trade truce and guardrails for AI development.

- Non-sensitive trade -

Asked about the possibility of mutual tariff reduction on certain goods, Greer said teams "are continuing to work through this."

The aim is to identify "non-sensitive" goods that can be considered separately from trade measures in the future, he added.

Such products could cover consumer goods from the Chinese side and energy, agriculture and other products like medical devices on the US side.

Beyond less sensitive items, US officials are also seeking to ensure the continued flow of rare earth magnets and critical minerals that are vital for US manufacturers.

Working level meetings could continue into Monday, a source familiar with discussions earlier told AFP.

Previous negotiations saw China pledge purchases of US agriculture goods too, and their fulfilment of the terms could also be an issue under scrutiny.

Another issue is US economic pressure on Iran, as Washington's war with Tehran has entered its seventh month.

China is a top economic partner of Iran that buys much of its oil output and a key diplomatic backer.

Analysts caution that expectations for the Trump-Xi summit are low.

"One of the only things we can hope for in the short term is a truce, and that this will likely continue through the remainder of this year," said former US deputy secretary of state Kurt Campbell.

"I think you will hear the president announce the intention to meet with Xi Jinping two more times," added Campbell, who is now chairman of The Asia Group consultancy.

Trump and Xi are expected to meet in November at the Asia-Pacific Economic Cooperation (APEC) forum in Shenzhen, China. Trump is also anticipated to invite Xi to the G20 summit in December at his Doral resort in Miami.

S.Pimentel--PC