U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng opened talks in New York on AI safety, trade and critical minerals ahead of a summit and the November 10 trade-truce deadline. A limited agreement is more likely than a grand bargain. Korean companies should expect minerals, tariffs and technology controls to move at different speeds.
- Trade: tariff relief on non-strategic goods and Chinese purchases of U.S. agriculture and aircraft.
- Critical minerals: stable flows of rare earths needed for AI, semiconductors and vehicles.
- AI: guardrails for self-improving systems and biological or nuclear dual-use risks.
1. Rare-earth stability will remain conditional
China dominates refining and magnet supply chains. Even if volumes stabilize, licensing and traceability for strategic items are likely to remain. Korean electronics, automotive and robotics firms should not treat a short-term normalization as the end of supply-chain risk.
2. AI talks can redefine chip controls
Controls may expand beyond computing performance to end users, model purpose, data-center location and re-export management. Samsung, SK hynix and Korean equipment or material suppliers will need stronger customer and end-use evidence.
3. Tariff relief will not reverse dual sourcing
Some non-strategic tariffs may ease, but semiconductors, batteries, rare earths and defense items will remain strategic. Companies should retain alternative production and customer-approval paths across Korea, the U.S. and Southeast Asia while using China's cost base selectively.
Action checklist
- Trace rare earths, magnets and specialty metals through tier-two suppliers.
- Manage China-origin inventory days together with substitute-material qualification time.
- Standardize customer, end-use and installation-country records for AI and chip exports.
- Shorten quotation validity around the November 10 policy window.
BIZPECTRA view
The talks manage the cost of rivalry rather than end it. Korean manufacturers should separate strategic from ordinary goods and manage supply, customer and regulatory data together instead of betting on one side's victory.
Materials origin, customer qualification, substitute testing and lead times move together in electronic-component and precision-plating supply chains. CHEMNEX supports non-China partner connections and material or plating alternatives.
Source
As of September 20, 2026. Reuters — U.S.–China talks on AI, trade and critical minerals