US, China must be clear-eyed on AI ties, says Bessent

U.S. Treasury Secretary Scott Bessent has emphasized the need for the United States and China to maintain a clear understanding of their differences in artificial intelligence (AI) while navigating a path towards cooperation. Speaking at an event in New York, Bessent called for a balanced and reciprocal relationship between the two nations, one that acknowledges their shared risks and prevents misunderstandings.

Bessent's remarks came ahead of his upcoming trip to China, where he will participate in a meeting with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders summit. The meeting will focus on establishing a new bilateral dialogue on superintelligence, or SI, as the Trump administration refers to this advanced technology.

The dialogue aims to address shared risks, avoid misunderstandings, and exchange best practices for evaluating, testing, and maintaining human control over advanced AI models.

Bessent stressed that as AI continues to advance, it will require new areas of risk management and a demonstration of how the two nations can balance competition with responsibility. He cautioned against illusions about the differences between the United States and China, acknowledging that their interests may not always align and that their approaches to challenges will not always converge.

The U.S.-China AI relationship will be supported by a Board of Trade to determine tariff cuts on non-sensitive goods and a Board of Investment to provide a structured forum for increased predictability for Chinese companies. Bessent reiterated that while the U.S. trade deficit with China remains a source of friction, the objective is to "de-risk, not to decouple" trade with China.