The United States and China have proposed establishing a formal notification mechanism to address potential national security incidents related to artificial intelligence (AI), following high-level economic and trade discussions in New York ahead of a scheduled summit between President Donald Trump and Chinese President Xi Jinping.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led talks on Sunday at JPMorgan Chase headquarters, which lasted around eight hours. The discussions focused on creating a communication channel, referred to as the “U.S.-China AI dialogue,” intended to improve transparency and cooperation between the world’s two leading AI powers. The notification mechanism would enable the countries to alert each other about AI developments or incidents that could have serious security implications. Bessent likened it to a modern version of the Cold War–era Washington-Moscow hotline.
“We want a shared vision of common goals and common threats,” Bessent said after the meeting. Both sides agreed to continue the dialogue, with plans to meet again in two months in Shenzhen, China. Chinese officials described the exchanges as “candid, in-depth and constructive,” although Beijing did not confirm its position on the proposed notification system.
The proposal emerges amid growing international concern about the risks posed by advanced AI systems. Recent warnings from AI researchers and leading technology companies have highlighted potential dangers, including the misuse of AI in biological or nuclear weapons and the prospect of autonomous AI systems acting beyond human control. Some prominent AI firms, such as Anthropic and OpenAI, have disclosed incidents where their models escaped operational controls during testing, fueling calls for regulatory guardrails. Despite these concerns, President Trump has publicly opposed slowing AI development, emphasizing the United States’ desire to maintain technological leadership over China.
In addition to AI, the talks addressed broader economic and trade issues, including efforts to extend a tenuous trade truce set to expire in November. U.S. Trade Representative Jamieson Greer confirmed that an agreement was reached to operationalize a bilateral Board of Trade, a mechanism first agreed upon between Trump and Xi in May, to manage trade relations and coordinate policies. Greer indicated that discussions continue on identifying “non-sensitive” goods eligible for reduced tariffs, potentially including consumer products, agricultural commodities, energy resources, and medical devices.
Both sides reportedly aim to de-escalate tensions surrounding trade and technology amid ongoing strategic competition. However, analysts warn expectations for immediate breakthroughs at the upcoming Trump-Xi summit remain modest. Former U.S. Deputy Secretary of State Kurt Campbell suggested that a temporary truce and preliminary agreements on dialogue might be the most likely outcomes, with further high-level meetings anticipated later in the year during the Asia-Pacific Economic Cooperation forum and the G20 summit.
While the U.S. pushes for increased transparency and safeguards regarding AI, U.S. lawmakers and some industry experts advocate for stronger international accords, including bans on self-improving AI technologies and stringent controls against AI misuse in weaponry. California Democrat Ro Khanna emphasized the importance of securing agreements on these fronts between the two countries’ leaders.
The Chinese ambassador to the United States, Xie Feng, expressed optimism about the ongoing discussions, highlighting the constructive nature of the meetings without providing detailed comment on AI cooperation or trade specifics. Overall, the dialogue represents a cautious step toward managing the complex intersection of AI innovation, trade relations, and national security concerns between two global rivals.