U.S., China Discuss AI Security Notification System Amid Intensifying Tech Rivalry

The United States and China have discussed establishing a new communication mechanism to exchange information on artificial intelligence (AI) incidents that could pose national security risks, signaling a willingness to cooperate on managing emerging threats despite their intensifying technological competition.

U.S. Treasury Secretary Scott Bessent disclosed the discussions on Sunday after meeting Chinese Vice Premier He Lifeng in New York, saying greater transparency between the world's two leading AI powers is becoming increasingly important.

According to Bessent, the two sides explored creating a notification mechanism that would allow Washington and Beijing to alert each other if an AI-related incident escalates to the level of a national security concern. Both countries agreed to continue discussions on the proposal.

The talks come just days before U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a summit in Washington. Their meeting follows nearly eight hours of discussions in New York covering AI, trade, tariffs, and broader economic relations.

The world's two largest economies are engaged in an increasingly fierce race for dominance in artificial intelligence and advanced technology. Competition over cutting-edge AI models, semiconductor manufacturing, computing power, and digital infrastructure has become a defining feature of relations between Washington and Beijing.

At the same time, the rapid advancement of AI has raised global concerns over its potential risks. Researchers have warned about the technology's possible impact on national security, while several industry leaders have urged governments to adopt more cautious and regulated approaches to AI development.

President Trump, however, has largely rejected calls to slow AI development, arguing that any reduction in the pace of innovation could allow China to gain a strategic advantage. Earlier this month, he said the country that leads in AI will secure a significant geopolitical edge.

Despite their rivalry, both governments now appear to recognize the need for direct communication on AI-related risks.

Bessent said that, as with other cross-border issues, greater transparency between the world's two leading AI powers is preferable to uncertainty. Discussions in New York also included the possibility of launching a formal U.S.-China AI dialogue focused on national security risks and crisis communication.

China's state-run Xinhua News Agency described the talks as "frank, in-depth and constructive," adding that AI was among the issues discussed alongside trade and economic cooperation.

No formal agreement has yet been reached on what types of AI incidents would require notification, how information would be shared, or the timeline for doing so. Officials described the proposal as a framework for future negotiations rather than a finalized arrangement.

Beyond AI, the two sides also discussed their ongoing trade dispute.

Officials are working on a proposed "Board of Trade" mechanism designed to identify relatively less-sensitive products that could be considered for tariff reductions. Consumer goods, agricultural products, energy, and certain medical equipment are among the categories under discussion.

However, major disagreements remain unresolved, particularly over critical minerals, rare earth supplies, and other strategically important sectors.

The temporary pause in tariff escalation between the world's two largest economies is due to expire on Nov. 10, making efforts to stabilize trade relations increasingly important ahead of the Trump-Xi summit.

U.S. officials said the proposed trade mechanism is intended to explore tariff reductions on lower-sensitivity goods, though it remains unclear whether it will evolve into a broader trade agreement.

Artificial intelligence has rapidly evolved beyond a commercial technology, becoming increasingly tied to national security, cybersecurity, critical infrastructure, and military capabilities.

Experts warn that advanced AI systems could be exploited to launch cyberattacks, disrupt critical infrastructure, spread disinformation, or create other security threats. A dedicated communication channel between Washington and Beijing could therefore help prevent misunderstandings and reduce escalation risks if a significant AI-related incident occurs.

The latest discussions placed particular emphasis on mutual notification of AI incidents with national security implications, a mechanism that could also help build confidence between the two strategic rivals.

Even so, prospects for broader cooperation remain limited given the intense competition between the two countries. U.S. restrictions on advanced semiconductor exports and ongoing concerns over China's technological ambitions continue to fuel mutual distrust.

Officials view the New York meeting as part of the preparations for the upcoming Trump-Xi summit, with negotiators laying the groundwork for discussions on economic and technology-related issues.

In a post on social media platform X, Bessent said the talks helped establish a foundation for President Trump to advance U.S. economic interests and deliver tangible results for the American people.

Chinese officials likewise characterized the discussions as constructive, although the future of any AI security arrangement will likely depend on whether both sides can balance growing national security concerns with their competing technological ambitions.

The two governments also discussed AI cooperation during Trump's meeting with Xi in Beijing in May, alongside efforts to ease trade tensions. Those talks led to progress on Chinese purchases of Boeing aircraft and U.S. agricultural products in exchange for steps toward reducing tariffs.

The latest discussions ahead of the Washington summit suggest that while Washington and Beijing remain strategic competitors in the race for AI leadership, both sides are seeking to keep limited channels of cooperation open to manage the technology's growing security risks.