The US has proposed a new notification mechanism for artificial intelligence incidents that could affect national security, according to Treasury Secretary Scott Bessent. The proposal was discussed during talks in New York between Bessent and Chinese Vice Premier He Lifeng ahead of a White House meeting between President Donald Trump and China’s Xi Jinping on Thursday. Bessent described the move as a step toward transparency between the world’s two leading AI powers, noting that moving from opaque to open information sharing is important for managing shared threats.

The proposal comes as Trump has resisted calls to slow down AI development, arguing that doing so would help China catch up to US companies. While the US and China agreed to operationalise a new 'Board of Trade' discussed during Trump’s visit to Beijing in May, the AI incident alert system is a separate initiative. Experts suggest this risk notification mechanism could set a precedent for other nations to follow in managing cross-border AI risks.

The talks also covered economic and trade issues, including the potential for lower tariffs on consumer and agricultural goods, energy products, and medical devices. Chinese state media confirmed that the discussions were 'candid, in-depth and constructive' and focused on key economic and trade matters, though it did not detail the specific AI risks being discussed.

Why It Matters: Establishing a formal channel for sharing AI incident information could help prevent accidental escalation or misunderstandings between the two superpowers as they race to develop advanced AI systems. This mechanism would be a practical tool for managing the dual-use nature of AI technology, where the same capabilities can be used for both civilian and military purposes.