US Treasury's Bessent, China's He wrap up S. Korea talks ahead of Trump-Xi summit

By Heejin Kim and Brenda Goh

INCHEON, South Korea, May 13 (Reuters) - U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded three hours of talks on Wednesday in South Korea aimed at laying the groundwork for this week's Beijing summit of the leaders of the world’s two biggest economies.

Bessent, set to join President Donald Trump in Beijing later on Wednesday, arrived from Japan for the meeting with He, which had been expected to cover thorny economic and trade issues.

U.S. and Chinese officials gave no immediate summary of the discussions, held at a VIP reception hall at Incheon International Airport ahead of the summit between Trump and Chinese President Xi Jinping set to run from Thursday to Friday.

Earlier on Wednesday, He and Bessent each met President Lee Jae Myung at the presidential Blue House, his office said.

In his meeting with China's He, Lee said it was in the interests of South Korea and the world for the United States and China to develop stable ties, his spokesperson said.

Lee and Bessent discussed supply chains and critical minerals, Blue House spokesperson Kang Yu-jung told a briefing.

The talks between Bessent and He were likely to have been exploratory with limited immediate outcomes, said Kim Tae-hwang, a professor of international trade at Myongji University in Seoul.

"Both sides are essentially in a holding pattern ahead of the summit, sounding each other out, rather than seeking breakthroughs."

But neither side has strong incentives to make early concessions, said Kim, adding that the United States is unlikely to ease curbs on key technologies such as semiconductors.

China, in turn, buoyed by relatively resilient growth and trade performance, is under less pressure to offer significant compromises, he said.

China's lead trade negotiator, Vice Commerce Minister Li Chenggang, and Vice Finance Minister Liao Min accompanied He.

At the Beijing summit, the leaders are expected to agree to set up forums to ease mutual trade and investment, while China is expected to announce purchases related to Boeing airplanes, ​American agriculture and energy, U.S. officials have said.

Other topics set to figure in the talks are semiconductors, rare earths supplies and the Iran war as China, which maintains ties with Iran, is a major buyer of its oil, though Trump has said he did not expect to need its help in ending the conflict.