US-China Talks Stall Over Trade Truce Extension, AI Accord

US and Chinese officials met in New York for their second round of talks on Monday. The discussions centered around artificial intelligence, investment, and trade.

The focus was on whether an agreement could be reached to extend a trade truce set to expire in November. Jameson Greer, the US Trade Representative, suggested that extending the truce by three months at a time or six months might benefit the United States. In contrast, China prefers a one- or two-year extension.

The Chinese have granted fewer export licenses for rare earth and rare earth magnets, critical to high-tech supply chains, in recent months. This data supports Greer's claim that smaller increments in extending the truce would be beneficial to the US.

Despite some progress, trust remains a significant issue between the two countries. The next meeting is set for Thursday, but expectations are low, and some predict an extension of the trade truce may not be announced until APEC in Shenzhen on November 18-19.