Markets React to U.S.-China AI, Trade Talks

On Sept. 20, 2026, U.S. Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng in New York for all‑day discussions ahead of a summit between President Donald Trump and President Xi Jinping. The talks took place at JPMorgan Chase’s (JPM) Manhattan headquarters and were described as part of the preparation for the leaders’ meeting scheduled for Sept. 24 in Washington.

U.S. Trade Representative Jamieson Greer also took part in the meetings. Officials framed the agenda around key areas of economic and technological friction between the two countries, using the New York session to outline issues and potential areas for progress before the summit.

Artificial intelligence featured prominently in the discussions. Bessent said the delegations examined potential guardrails around AI, including both open- and closed‑weight models. National security concerns were central, with attention to how advanced systems could pose cross‑border risks if incidents are not communicated quickly and clearly.

The U.S. side proposed establishing a U.S.-China AI safety notification mechanism to handle AI‑related events that rise to a national security level. Bessent also outlined a plan for a dedicated bilateral AI dialogue to address such issues on an ongoing basis. He stressed that moving from opacity to greater transparency between what he called the number one and number two AI powers is “very important.”

Alongside AI, the New York meetings covered trade matters and critical minerals. Bessent and Greer used the session to review broader economic ties and areas where frictions have emerged, including supplies important to high‑tech manufacturing.

These themes linked the talks directly to the upcoming Trump–Xi summit, positioning the leaders’ meeting as a venue that could potentially address outstanding trade and resource questions. Officials presented the New York engagement as groundwork intended to help make the Washington summit successful.

After the meetings, Bessent told reporters that the U.S. had a successful engagement with the Chinese side. His comments signaled that the two delegations were able to hold extensive, structured talks on sensitive topics ahead of the summit.

Asian shares mostly advanced on Monday following his remarks, and U.S. futures were higher. The market reaction reflected investor attention to signs of stability in U.S.-China economic and technological relations, with trading responding to the perceived tone and outcome of the New York talks.