US and China Propose AI Risk Notification Mechanism

The United States has proposed a new "notification mechanism" for artificial intelligence (AI) incidents that could impact national security, as revealed by Treasury Secretary Scott Bessent on Sunday. This initiative emerged from weekend discussions held in New York ahead of anticipated talks between U.S. President Donald Trump and Chinese President Xi Jinping at the White House this week. Bessent articulated the U.S. objective as fostering a "shared vision of common goals and common threats," emphasizing the importance of increased transparency between the world's leading AI powers, often referred to as the "No. 1 and the No. 2 AI powers." This move aims to transition from an opaque environment to one characterized by greater openness in AI-related activities.

U.S. Trade Representative Jamieson Greer, standing alongside Bessent at the JPMorgan Chase headquarters, confirmed that the groundwork had been established for the upcoming summit between Xi and Trump, scheduled for Thursday. He further stated that the two nations had agreed to operationalize a new "Board of Trade," an idea initially discussed when Trump and Xi met in Beijing in May. Greer indicated that this board, which was conceptualized as a framework for economic cooperation, has now transitioned from a notion to a tangible reality. Discussions are ongoing regarding which "nonsensitive" items might be eligible for reduced tariffs. The potential list of goods for tariff consideration could encompass consumer and agricultural products, energy commodities, and medical devices, reflecting a broad scope for bilateral trade adjustments.

Chinese state media outlet Xinhua reported that Bessent and Chinese Vice Premier He Lifeng engaged in discussions concerning "issues relating to AI," though specific details were not disclosed. The Xinhua report characterized the broader economic and trade discussions as "candid, in-depth and constructive," highlighting progress on key bilateral economic matters. George Chen, a partner and chair of digital practice at The Asia Group consultancy, commented in writing that the continuation of dialogue between the two nations is a significant development. Chen specifically noted that the initial outcome, the AI risk notification mechanism, establishes a precedent that could potentially be adopted by other countries, suggesting a broader international implication for this bilateral agreement. The U.S. proposal underscores a growing international recognition of the need for coordinated approaches to managing the risks associated with advanced AI technologies, particularly those with national security implications.