US proposes AI safety channel before Trump-Xi summit

US Treasury Secretary Scott Bessent has proposed a new system for notifying Washington and Beijing about artificial-intelligence incidents that could threaten national security, CNN reported, after senior officials from the two countries ended talks in New York on Sunday.

The proposal is intended for consideration by US President Donald Trump and Chinese President Xi Jinping when they meet in Washington on Thursday and Friday. Bessent said the discussions also included the possibility of creating a formal US-China dialogue on AI, focused on shared objectives and dangers.

The suggested arrangement would cover AI-related events judged serious enough to have national-security implications. Bessent argued that greater openness between the world’s two leading AI powers could help both governments respond to risks that cross national borders.

China’s response was not clear. A readout from the state news agency Xinhua said the sides discussed AI, but gave no indication that Beijing had accepted the proposed mechanism. It described the wider negotiations as candid and constructive, with much of the conversation focused on economic and trade matters and on carrying out agreements reached during earlier consultations.

A proposed dialogue with an uncertain future

Trump and Xi had discussed possible consultations on AI development during a meeting in Beijing in May. That forum was never formally established, leaving the latest proposal as a possible attempt to put regular communication on a more concrete footing.

US Trade Representative Jamieson Greer said restrictions on advanced AI chips and semiconductor-making equipment were not part of the talks about the proposed notification process. The distinction matters because technology controls remain one of the most sensitive areas in the US-China relationship, even as officials explore cooperation in selected areas.

Greer said the New York meeting was designed to prepare for a productive presidential summit. He also stressed that cooperation would not remove the broader disagreements between Washington and Beijing. Chinese Vice Premier He Lifeng and China’s chief trade negotiator, Li Chenggang, left the meeting venue at JPMorgan Chase’s headquarters without commenting to reporters.

The talks took place against a backdrop of competing pressure to manage and contain the relationship. AI has become a central national-security concern, while trade restrictions, access to technology and supply-chain vulnerabilities continue to shape relations between the two governments.

Trade discussions remain focused on limited concessions

Alongside AI, negotiators worked on how to put into practice a process agreed in May that would allow each country to identify possible tariff reductions on goods considered non-strategic. Greer referred to the arrangement as the “Board of Trade”, but did not provide a list of products that might qualify.

His description suggested a narrow group of goods that could be exchanged on a balanced basis and treated separately from more sensitive trade. Possible Chinese exports could include consumer products and low-technology items. Potential US exports could include energy, farm goods and medical devices.

The officials did not report progress on critical minerals, despite earlier US statements that Chinese measures restricting their supply to American companies remained inadequate. Beijing had previously committed to loosening those restrictions under a trade truce reached last year.

Nor did Bessent or Greer offer updates on unresolved commitments discussed after the May Trump-Xi meeting. Those included Chinese plans to buy an additional $17bn in US agricultural products each year and to purchase more than 200 Boeing aircraft.

Business delegation adds another layer

China’s Ministry of Commerce said on Saturday that He would lead Chinese companies taking part in economic and trade consultations in the United States before the summit. The delegation resembles a group of American chief executives Trump brought to Beijing in May.

Its arrival comes as Trump has indicated he could accept Chinese carmakers establishing factories in the United States. At the same time, US automotive organisations have urged the administration to preserve what they regard as an effective prohibition on Chinese vehicle sales, citing national-security concerns.

The combination of a proposed AI communication channel, limited tariff discussions and unresolved disputes points to cautious management rather than a broad settlement. Analysts cited by CNN said both sides were likely seeking to preserve the existing situation, avoiding a fresh escalation in a relationship with consequences for the wider economy.

The summit will therefore have to address two competing expectations: finding practical ways to reduce the risk of miscalculation in areas such as AI, while leaving fundamental disagreements over technology, trade and security unresolved.