Scott Bessent to meet China’s He Lifeng this weekend as trade talks intensify

US Treasury Secretary Scott Bessent confirmed he will meet with Chinese Vice Premier He Lifeng this weekend, adding another chapter to what has become one of the most consequential bilateral economic dialogues in recent memory.

Bessent and He Lifeng have met in Davos, Paris, London, Seoul, and Geneva over the course of 2025 and 2026, establishing what amounts to a standing appointment between the world’s two largest economies.

Chinese state media has described the exchanges as “candid, in-depth, and constructive.” The discussions have covered tariff adjustments, rare earth mineral supply commitments, and US agricultural exports. One specific target: the US aims to export roughly 25 million tons of soybeans to China in 2026. A July 30, 2026 video call between the two reportedly turned pointed, with He Lifeng voicing serious concerns about US trade restrictions.

The Board of Trade framework

One of the more intriguing developments to emerge from the ongoing negotiations is a proposed Board of Trade mechanism. The concept would create a structured framework for exploring duty cuts on approximately $30 billion worth of goods traded between the two countries.

These bilateral discussions between Bessent and He serve as precursors to higher-level meetings between President Trump and President Xi Jinping. The working-level talks are designed to narrow disagreements and identify areas of potential agreement before the principals sit down.

Rare earths and agricultural leverage

China controls a commanding share of global rare earth processing, materials essential for everything from electric vehicles to military hardware to consumer electronics. Agriculture flows in the opposite direction. China is one of the largest buyers of US farm products, and the 25-million-ton soybean target for 2026 isn’t just an economic figure — it’s a political one, given the importance of farm-state voters in US elections.

What this means for markets

For investors watching the agriculture sector, the soybean export targets and broader agricultural purchase commitments provide a degree of visibility into future demand. The rare earth dimension carries implications for the technology and defense sectors, where any progress on supply guarantees could ease concerns about input costs for manufacturers dependent on these materials.

The proposed Board of Trade mechanism, if it advances this weekend, could provide businesses greater certainty about future trade costs on $30 billion in goods, potentially unlocking investment decisions that have been on hold pending clarity on the tariff landscape.

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