​U.S. and China Open High-Stakes Talks on AI, Tariffs, and Critical Minerals Ahead of Presidential Summit

Devangi Chandok, Jadetimes Staff

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Image Source: Bloomberg

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng in Manhattan on Sunday for high-stakes economic talks aimed at laying the groundwork for an upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping in Washington.

The daylong negotiations, held at JPMorgan Chase’s headquarters, were designed to forge preliminary agreements across critical points of friction, including artificial intelligence guardrails, expiring trade truces, and the supply of critical minerals essential for advanced manufacturing.

Heading into the summit, experts urged low expectations for major structural shifts, suggesting both sides are primarily focused on maintaining stability. “I think there will be some show of deliverables because of the fact that it’s a presidential summit coming, but I don’t feel like we’re on the verge of some sort of breakthrough,” said Anna Ashton, a China trade analyst and founder of Ashton Intelligence. “I think status quo is probably both sides’ general best expectation.”

A primary driver for Sunday’s meeting was the November 10 expiration of the current U.S.-China trade truce. Originally established in Busan, South Korea, in November 2025, the agreement capped tit-for-tat tariffs at roughly 20%. Although the U.S. Supreme Court subsequently struck down initial emergency-authority tariffs, Washington has actively moved to rebuild its tariff structure under alternative trade authorities. These include a restored 12.5% tariff linked to forced labor allegations and ongoing investigations targeting China’s industrial overcapacity.

Critical mineral supplies formed another tense focal point. While Beijing pledged under previous agreements to restore the flow of rare-earth magnets and strategic minerals to international markets, U.S. officials indicated performance has fallen short. A senior U.S. official noted Friday that China's mineral exports remained "not up to par," elevating the issue to a top priority for Washington given these materials' vital role in producing advanced semiconductors and next-generation technologies.

For the first time, bilateral talks formally expanded into artificial intelligence governance. Both nations occupy dominant positions in AI development, creating a urgent need to address systemic risks. Secretary Bessent emphasized that discussions would cover both closed-weight AI models, such as those developed by American firms like OpenAI and Anthropic, and open-weight models, which are gaining traction among U.S. businesses due to lower deployment costs.

“The United States remains the leader in AI. And we are open to discussions on avoiding shared risks and avoiding bifurcation of our two systems,” Bessent said in a statement preceding the meeting, calling for bilateral “guardrails” to keep potent AI capabilities out of the hands of non-state adversaries.

Beyond technology, negotiators worked through lingering commitments from the leaders' previous May meeting in Beijing. These include mutual pledges to reduce tariffs on non-strategic goods via a framework termed the “Board of Trade,” as well as Chinese promises to boost purchases of U.S. agricultural products by $17 billion annually and purchase more than 200 Boeing aircraft. Additionally, Washington is weighing regulatory shifts that could allow American pharmaceutical companies to invest directly in promising Chinese biotech firms.

Accompanying Vice Premier He was a prominent delegation of Chinese business leaders participating in parallel trade consultations. The delegation's arrival coincides with dynamic shifts in U.S. industrial policy, following President Trump’s recent indications of openness toward Chinese automakers establishing manufacturing facilities within the U.S., a stance that has drawn pushback from domestic auto trade groups citing national security concerns.

Sunday's high-level session reflects a continued pattern of preliminary diplomacy aimed at preventing sudden escalations between the world's two largest economies ahead of direct presidential engagements.

Global Market Sentiment Improves Amid Fed Rate Cut Hopes and Political Fragility

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: REUTERS/Issei Kato/File Photo

Global markets showed renewed strength on Monday as investors increasingly priced in the likelihood of a U.S. Federal Reserve interest rate cut this month. Softer than expected August labor data reinforced the belief that policymakers may shift toward easing, pushing Wall Street stocks higher and keeping Treasury yields near five-month lows. Gold, often a hedge against economic volatility, hovered close to record levels, signaling lingering caution.

In Asia, the Japanese yen weakened following the abrupt resignation of Prime Minister Shigeru Ishiba, who stepped down after his party suffered major election losses. Political uncertainty clouded Japan’s economic outlook, but investors bet on continuity in fiscal and monetary policy. The Nikkei 225 index climbed 1.8 percent, supported by hopes that fresh leadership might restore confidence while maintaining accommodative policies.

Elsewhere in Asia, Chinese equities edged higher as Beijing signaled continued support for struggling property developers and ramped up infrastructure spending. Investors viewed these moves as critical steps to stabilize growth, even as export challenges persist amid global trade tensions.

European markets, however, reflected a more cautious tone. In France, Prime Minister François Bayrou faced the prospect of a no-confidence vote, raising questions over the government’s ability to push through fiscal reforms. The uncertainty pressured the euro, though European equities remained largely stable as investors looked ahead to key inflation data later this week.

Energy markets also influenced sentiment. Oil prices rose more than 1 percent after OPEC+ announced plans to slow the pace of production increases from October. The decision helped ease supply concerns and supported energy stocks globally, though higher oil costs risk complicating inflation control efforts in consumer driven economies.

Overall, investors are navigating a complex landscape where optimism over potential Fed rate cuts collides with heightened political risks in major economies. Analysts warn that while easier U.S. monetary policy could boost liquidity and risk appetite, instability in Japan, France, and other key markets may continue to inject volatility into global trading patterns.

For now, the combination of supportive central bank expectations and selective government interventions has kept markets afloat, but the balance between economic relief and political turbulence remains fragile.

Pakistan-India Relations: Tensions Persist Amid Hopes for Regional Stability

Baasma Wafa  Jadetimes Staff

B. Wafa is a Jadetimes news reporter covering Asia

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Image Source: South Asia Times

India and Pakistan, two of Asia’s most geopolitically significant neighbors, continue to navigate a fragile relationship shaped by decades of conflict, diplomatic setbacks, and periodic hopes for peace.

Barring any formal discussions since the collapse of bilateral talks in 2019, recent events—such as backchannel talks and increased regional economic interests—have led to cautious optimism among experts. Nevertheless, foundational issues around Kashmir, border security, and political rhetoric continue to pose significant challenges towards enduring normalization.

Both nations attended the regional trade talks organized by the Shanghai Cooperation Organization (SCO) earlier this year, a limited example of backchannel diplomatic talks. Although nothing was formally accomplished, analysts described it as good news for co-operation in the region.

''Peace in South Asia cannot be achieved without genuine interaction between India and Pakistan," stated Dr. Ayesha Malik, political analyst at Lahore University of Management Sciences. "Economic interdependence and regional development need to be on the agenda.''

On the Indian side, officials have stressed security-first policy, particularly in light of cross-border tensions and fears of terrorism. Pakistan, on its part, continues to advocate for the resumption of talks and settlement of the Kashmir question as per international paradigms.

In spite of persistent challenges, cultural engagements and people-to-people contacts—such as cross-border art, film, and cricket diplomacy—persist in engendering goodwill, particularly among the younger generations keen on peace.

The experts aver that the two nations would have much to gain from diminished animosity and growing economic collaboration within a region common to poverty, climate exposure, and energy demands.

“As Asia rises, South Asia cannot afford to remain divided,” said Prof. Rajiv Menon, a foreign policy scholar based in New Delhi. “India and Pakistan must look beyond the past and build toward mutual stability and growth.”