Trump and Xi may not resolve their AI rivalry, but AI safety could open door for dialogue

Artificial intelligence (AI) is becoming a new battleground in the escalating US-China rivalry. At the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, both leaders are expected to discuss establishing a mechanism for AI dialogue to tackle safety and national security concerns. However, beneath the rhetoric of cooperation lies a deeper struggle for control over AI technologies, chips, and computing infrastructure that could shape the future global economy.

The US aims to maintain its lead in advanced AI, with Trump stating, "We're leading China in AI, and frankly, I want to keep it that way, because whoever wins AI, wins." The US has also imposed restrictions on China's access to advanced semiconductors and AI-related technologies, though the extent of these measures remains a subject of debate.

China, on the other hand, is investing heavily in AI as part of its economic transformation, with state-led funds totaling over $184 billion invested in AI firms between 2000 and 2023. Private AI investment in China is lower compared to the United States, where private sources poured $285 billion into the technology in 2025. The AI competition differs from traditional trade disputes as restrictions on chips, computing power, and advanced AI models can significantly impact the technological capabilities of various industries.

Despite the tensions, the US and China could find common ground on AI safety at their summit. Officials have already discussed setting up a channel to discuss AI risks, while Chinese state media has called for AI to become a new area of US-China cooperation. The summit highlights that AI is not just a technology issue but is also intertwined with trade, industrial policy, national security, and economic power.

As Washington and Beijing navigate their relationship, control over advanced AI could emerge as one of the most significant bargaining chips between the world's two largest economies.