US and China discuss lower taxes before their trade pause ends on November 10

US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng met in New York before US President Donald Trump and China’s President Xi Jinping meet later this week. Bessent called the talks “very successful.” They discussed trade and AI, or artificial intelligence, computer technology that can do tasks linked to human thinking. They did not announce a final list of tax changes or a finished AI safety plan.

On trade, both sides moved forward with a plan to find a small group of goods that could get lower taxes. A tax on goods coming from another country is called a tariff. Possible goods include Chinese goods for everyday use and simple technology products, as well as US energy, farm goods and medical devices. Officials did not name any goods for a tax cut. The current trade truce, or pause in the trade fight, ends on November 10.

On AI, US officials said the countries agreed to have a formal way to talk. Bessent proposed that they tell each other about serious AI problems that could affect national security. China’s public report said the sides discussed AI, but it did not clearly say whether China accepted this plan. US officials said rules on advanced AI chips were not part of the talks.

This matters because the two leaders will meet soon, and the trade pause has an end date. The talks created a way to keep discussing trade and AI, but important details remain open.