1 week ago
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US Treasury Secretary Scott Bessent confirmed he will meet with Chinese Vice Premier He Lifeng ahead of a planned summit between President Donald Trump and President Xi Jinping, scheduled for September 24 in Washington. Bessent made the announcement during testimony before the House Financial Services Committee, framing the sit-down as part of an ongoing bilateral economic channel that the two officials have been building for months.
The pre-summit meeting is designed to iron out details on some of the thorniest issues in the US-China economic relationship: rare earth exports, agricultural purchase commitments, and sanctions connected to Iran.
A well-worn diplomatic track
Bessent and He Lifeng are no strangers to each other at this point. The two have met in person at Davos, London, and South Korea, and maintained regular phone and video calls since 2025. Bessent described those prior exchanges as “very good private discussions.”
He Lifeng, a Politburo member and longstanding associate of Xi Jinping, oversees China’s economic and financial affairs. Bessent, the 79th US Treasury Secretary and a former investor, has positioned himself as the administration’s primary interlocutor on trade matters with Beijing.
Their previous conversations have covered ground ranging from tariff truces to AI-related cooperation. On the trade front specifically, discussions have included US agricultural purchases targeting tens of millions of tons of soybeans, a recurring flashpoint in the relationship that affects farming states and commodity markets alike.
What’s actually on the agenda
Three items stand out as likely focal points for the upcoming Bessent-He meeting.
First, rare earth elements. China dominates global rare earth production and processing, giving it significant leverage over supply chains for everything from electric vehicles to military hardware.
Second, agricultural trade. Soybean purchases have served as a kind of diplomatic currency in US-China relations for years, with China alternately ramping up and scaling back imports depending on the state of broader negotiations.
Third, Iran-related sanctions. The US has been pressing China on financial flows connected to Iran, and Bessent raised the topic explicitly during his congressional testimony.
Setting the table for September 24
Bessent’s pre-summit meeting with He Lifeng serves a practical function: it narrows the range of possible outcomes on trade commitments and supply-chain stability ahead of the Trump-Xi summit.
The established rhythm of Bessent-He communications, with its multiple in-person meetings and regular calls, suggests both sides see value in keeping the channel open regardless of broader political headwinds.
For markets, sectors with direct exposure to US-China trade, particularly agriculture, rare earth-dependent manufacturing, and companies navigating sanctions compliance, will be parsing every readout for clues. Commodity traders should watch soybean futures closely in the days surrounding the meeting, given the history of agricultural purchases serving as a leading indicator of broader negotiation progress.
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English (US) ·