Prospects for extending the US-China trade truce are solidifying as Treasury Secretary Scott Bessent prepares to meet Chinese Vice Premier He Lifeng this weekend ahead of the Sept. 24 summit between President Donald Trump and Xi Jinping in Washington. The two sides are discussing slashing tariffs on roughly $30 billion in trade, including American energy, agricultural products, and Chinese manufacturing inputs, with most-favored-nation rates applied to some items. An extension would ease pressure on a global economy facing wars in Iran and Ukraine, elevated oil prices, and rising borrowing costs.

However, expectations remain tempered by China's ties to Iran and Russia and fierce competition over artificial intelligence. Scott Bessent emphasized maintaining the US lead in AI, stating, "It does matter whether the good guys or the bad guys have this." Last week, US security agencies accused Chinese firms Deep Seek and Moonshot AI — maker of the Kimi K3 model — of extracting proprietary knowledge from American companies, allegations Beijing has rejected.

The summit remains on track, with Xi expected to visit the White House for a state dinner. Representatives from state-owned food trader Cofco may join the Chinese delegation, while a CEO group including Nvidia Corp.'s Jensen Huang and Tesla Inc.'s Elon Musk could accompany Trump, echoing May's visit where executives met Premier Li Qiang.