US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng began the discussions on Sunday, with US Trade Representative Jamieson Greer also taking part in the talks.
The meeting is being held at JPMorgan Chase’s headquarters in New York and is expected to continue throughout the day. The negotiations come ahead of a potential meeting between Trump and Xi at the White House on Thursday.
The two sides are expected to discuss ways to ease ongoing tensions over trade, technology and other strategic matters. Among the issues likely to be considered is a possible extension of the temporary trade truce, which is due to expire in November.
The development of regulatory frameworks for artificial intelligence is also expected to feature in the discussions as Washington and Beijing seek to address emerging challenges surrounding the rapidly developing technology.
Ahead of the talks, Bessent told reporters that he was looking forward to “focused, comprehensive and constructive” discussions that would help lay the groundwork for a meeting between the two presidents.
US officials are also expected to press for reliable supplies of magnets made from rare earth elements and other critical minerals, which are considered important for American industries and manufacturing.