US China to Coordinate AI Issues on National Security Matters

In a meeting on Sunday, the U.S. Treasury secretary and China’s vice premier talked about having a shared vision on the goals of artificial intelligence and the threats it poses.

1.    Proposed U.S.-China AI notification system

o    The United States and China discussed creating a mechanism through which each country could alert the other about AI-related national-security issues.

o    The proposed mechanism would be called the “U.S.-China A.I. dialogue.”

2.    High-level economic talks in New York

o    Discussions were held on Sunday in New York, ahead of President Xi Jinping's planned state visit to Washington.

o    Participants included:

§  Scott Bessent, U.S. Treasury Secretary

§  Jamieson Greer, U.S. Trade Representative

§  He Lifeng, China's Vice Premier

3.    Purpose of AI dialogue

o    The proposed notification system would be activated when an AI-related issue reaches the national-security level.

o    Bessent said the objective was greater transparency and a shared understanding of AI's goals and associated threats.

4.    Growing AI security concerns

o    The initiative reflects concerns that rapidly developing AI could create national-security risks, including:

§  Hacking and cyber operations

§  Enhancement of military capabilities

§  Development of lethal weapons

§  Advanced surveillance applications

5.    U.S. concerns about Chinese AI capabilities

o    U.S. officials are concerned that AI could strengthen Chinese hacking, military and surveillance capabilities.

o    A recent Trump administration report accused Chinese companies of taking proprietary functions and capabilities from U.S. AI models.

o    AI-related issues are expected to feature in discussions between Trump and Xi.

6.    U.S.-China AI competition

o    The two countries continue to compete for leadership in artificial intelligence while international pressure for stronger AI regulation is increasing.

7.    New U.S.-China Board of Trade

o    Bessent and Greer also discussed plans to establish a new Board of Trade to promote trade in non-sensitive goods between the two countries.

o    The concept had been introduced by the United States earlier this year.

8.    Potential goods covered

o    Potential Chinese exports to the U.S. could include:

§  Consumer goods

§  Low-technology products

o    Potential U.S. exports to China could include:

§  Energy products

§  Agricultural goods

§  Possibly medical devices

9.    Creating a trade “ballast”

o    Greer said officials were seeking a sufficiently large group of products that could be “traded in a balanced way”, creating greater stability in the bilateral relationship.

10.  Background: one-year trade truce

o    The U.S. and China agreed to a one-year trade truce in October 2025 after a prolonged cycle of reciprocal tariffs and export controls.

o    The dispute had contributed to significant disruption in the global economy.

Key Takeaway

The New York talks combine two tracks: establishing greater transparency over AI-related national-security risks and rebuilding trade in non-sensitive goods. The proposed AI dialogue and Board of Trade could provide institutional channels for managing technology and trade tensions ahead of the Trump-Xi meeting.

 

[ABS News Service/21.09.2026]

The United States and China discussed on Sunday the creation of a notification system that would allow the countries to alert each other about national security issues related to artificial intelligence.

The countries spoke about the need for such a mechanism during a day of economic talks involving Treasury Secretary Scott Bessent; Jamieson Greer, the U.S. trade representative; and China’s vice premier, He Lifeng. The meetings took place in New York ahead of President Xi Jinping’s state visit to Washington later this week, and they were intended to lay the groundwork for potential agreements between the world’s two largest economies on artificial intelligence, trade and the war in Iran.

The idea a new mechanism for addressing A.I. underscores the growing concern around the world that the rapidly evolving technology could pose national security risks.

Speaking after the meetings, which were held at the New York offices of JPMorgan Chase, Mr. Bessent said that the mechanism would be called “the U.S.-China A.I. dialogue” and that it would aim to ensure that the two countries had a shared vision on the goals of A.I. and threats that it poses.

Explaining that the notification system would be activated when a matter related to A.I. reaches the national security level, Mr. Bessent added: “We think that just like with any cross-border activity, that moving from opaque to more transparency between the No. 1 and the No. 2 A.I. powers in the world is very important.”

The United States and China have been racing to become the dominant powers in artificial intelligence technology at a time when there is increasing demand to regulate the industry because of concerns that it could spiral out of human control and be used for hacking and the development of lethal weapons.

America’s leading A.I. companies have recently published reports disclosing that their models have breached or bypassed contained testing environments. U.S. officials are also concerned about the potential for A.I. to enhance Chinese hacking operations, military capabilities and surveillance systems.

In a report earlier this month, the Trump administration accused Chinese companies of taking proprietary functions and capabilities from American A.I. models in an “aggressive, malicious and targeted” way. The issue is expected to be a topic of discussion between President Trump and Mr. Xi when they meet.

Mr. Bessent and Mr. Greer also said that they discussed trade with their Chinese counterparts. U.S. officials said they were moving forward with setting up a new so-called Board of Trade, a concept they introduced earlier this year, which would promote trade in nonsensitive goods between the United States and China.

The goods would include Chinese-made consumer goods and low-tech items, as well as American energy products, agricultural goods and potentially medical devices, Mr. Greer said.

Government officials on both sides were continuing to work, Mr. Greer said, to find a critical mass of goods that could be “traded in a balanced way, and create a kind of ballast for the relationship.”

The United States and China agreed to a one-year trade truce last October after engaging in a tit-for-tat war of tariffs and export controls that destabilized the global economy for months.