Bessent and He Lifeng Meet Twice in a Week as Xi Arrives in Washington

The United States is open to extending the US-China trade truce, or to a bigger deal, Treasury Secretary Scott Bessent said on Wednesday as he left a meeting with Chinese Vice Premier He Lifeng to prepare for a summit between the two presidents¹. Bessent said he and He Lifeng were meeting for a second time this week to deal with unfinished business before the Trump-Xi summit³. The South China Morning Post described the Washington meeting as unscheduled and held hours before the Chinese president’s arrival².

Trade negotiators have been running a parallel track. US Trade Representative Jamieson Greer also attended Sunday’s meeting, and Xi is to be welcomed by President Trump on his arrival at Joint Base Andrews⁴. Nikkei Asia reported Bessent arriving at the World Bank in Washington ahead of the Wednesday meeting⁶. The Herald Sun carried the same account of Bessent’s remarks after the meeting⁷.

Why it matters to investors

One issue is holding up the extension. Rare earths friction threatens to stall the trade truce extension ahead of the summit, even as both sides report progress on implementing a narrow tariff-reduced trade mechanism⁵. That leaves the supply of critical inputs, rather than headline tariff rates, as the binding constraint.

The industrial stakes extend beyond minerals. Democrats are worried that Trump may make auto industry concessions to Xi, after the president floated the possibility of allowing Chinese carmakers to build vehicles in the United States⁸.

What to watch

The first marker is whether the truce is extended at all, since Bessent framed extension and a larger agreement as alternatives rather than steps¹. The second is rare earths, the friction point negotiators have not cleared⁵.

Security files will sit alongside the economics. Secretary of State Marco Rubio defended the visit as essential despite deep disagreements, saying Taiwan arms sales must be weighed against America’s own military needs, and voiced hope that Vladimir Putin will attend the Group of 20 meeting⁹. The unfinished business Bessent described is what the two sides are trying to close before the leaders meet³, and the unscheduled nature of Wednesday’s session suggests the work was not complete². Nikkei Asia has been running the summit as a live event, an indication of how much market-relevant detail is expected to emerge from it⁶. For now the only firm commitment on the table is the narrow tariff-reduced mechanism both sides say they are implementing⁵.