Bessent sets stage for Xi visit in high-level China talk

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer held a high-level video call with China's vice premier to prepare for the September visit of its president, Xi Jinping, Axios has learned.

Why it matters: The call sets the stage for President Trump and Xi to sign future trade deals between the U.S. and China.

Zoom in: The cordial video conference call between Bessent, Grier and Chinese Vice Premier He Lifeng lasted more than an hour.

• "I emphasized that we expect Beijing to fully meet its commitments on rare earths and U.S. agricultural products," Bessent told Axios in a written statement.
• "We also discussed implementation of the Trade and Investment Boards as a mechanism to secure concrete progress toward a more balanced, fair, and constructive U.S.-China economic relationship."

Zoom out: Relations between the two countries have been tense at times as Trump has sought to limit China from obtaining advanced computer microchips as the two countries battle for AI supremacy.

• Xi threatened to withhold critical minerals needed for advanced computer and weapons technology.
• At a meeting in Beijing, Trump and Xi appeared to put differences behind them but signed no new deals.
• But this week, the Trump administration announced plans to ban Chinese robots and power inverters as national security threats.

Between the lines: The Iran war has added a new layer of complexity to the relationship between the two men and their countries.

• China is an Iranian ally and, according to Reuters, plans to sell shoulder-fired missiles to Iran. Trump said he would be "disappointed" if the sale went through.
• Earlier this month, Trump released once-classified documents indicating China meddled in the 2020 election. He then expressed hesitation about pushing the issue with Xi.
• "They do things and we do things to them. I'll be honest. We do things to them too," Trump told reporters last week. "It's not a one-way street. But we'll be talking to them, yes."