U.S. Treasury's Bessent Set to Discuss AI and Rare Earths with China's He

U.S. Treasury Secretary Scott Bessent is scheduled to meet with Chinese Vice Premier He Lifeng in New York City over the weekend to address artificial intelligence, international trade, rare earth minerals, and broader economic issues. According to a source familiar with the scheduling, the high-level dialogue comes as both nations navigate a complex technological and economic landscape.

The upcoming discussions carry considerable weight on the global stage, given that the United States and China represent the two primary driving forces behind the development of advanced artificial intelligence tools and their subsequent worldwide adoption. Furthermore, rare earth elements remain a critical component in the manufacturing of modern electronics and advanced technology systems.

The talks between Mr. Bessent and Mr. He are taking place just ahead of a planned summit between U.S. President Donald Trump and Chinese President Xi Jinping, which is scheduled for September 24 in Washington. This preliminary meeting between economic chiefs is expected to lay foundational dialogue for the presidential encounter.

In an official statement regarding the agenda, Mr. Bessent indicated that he anticipates the conversations with his Chinese counterpart will encompass both open- and closed-weight artificial intelligence models. Open-weight models are defined as AI systems featuring publicly accessible core elements, allowing users to download, modify, and fine-tune them for specific tasks and operations.

In recent months, Chinese open-weight models have grown increasingly popular among various U.S. companies. This surge in adoption is largely attributed to cost efficiency, as these systems can frequently prove to be more economical than closed-weight artificial intelligence tools developed by prominent American firms such as Anthropic and OpenAI.

The growing integration and visibility of Chinese technology within American sectors have also drawn scrutiny from federal authorities and investigators. Government utilization of these tools has occasionally sparked policy and security debates within Washington.

Highlighting this intersection of government use and security concerns, a recent Reuters report revealed that a U.S. government website previously utilized an artificial intelligence search tool sourced from a Chinese company. The tool was implemented to help users search through proposed federal regulations.

That deployment occurred despite previous allegations from the Federal Bureau of Investigation accusing the model’s developer, Alibaba, of engaging in what the agency described as malicious copying of technology belonging to the U.S.-based firm Anthropic.

As Secretary Bessent prepares for his discussions with Vice Premier He, the broader conversations are expected to touch upon these competitive tensions and regulatory questions. Both nations continue to grapple with how to manage intellectual property concerns while open-source and proprietary models compete in a global marketplace.

The talks in New York City will also evaluate broader trade dynamics between Washington and Beijing. Economic observers note that rare earths and technology supply chains remain central to bilateral negotiations, especially as both countries vie for technological supremacy.

With the Trump-Xi summit rapidly approaching later in the month, the outcomes of this weekend's financial and diplomatic exchanges could help shape the trajectory of U.S.-China relations in the technology sector. The dialogue underscores how artificial intelligence has evolved from a purely commercial domain into a core component of geopolitical strategy.