The United States and China are competing intensely for leadership in artificial intelligence, but officials from both countries are also beginning to explore ways to manage the risks created by increasingly powerful AI systems.

The issue has emerged as an important part of the broader U.S.-China relationship. During recent economic talks in New York, U.S. Treasury Secretary Scott Bessent said Washington had proposed a system that would allow the two countries to notify each other about serious AI incidents that could affect national security.

The proposal comes as President Donald Trump and Chinese President Xi Jinping prepare for talks in Washington, where AI is among the issues expected to feature in discussions between the two leaders.

Why AI has become a U.S.-China issue

Artificial intelligence is no longer viewed simply as a technology or business competition. Both governments increasingly see advanced AI as important to national security, economic strength and technological leadership.

The United States has maintained restrictions on China's access to some advanced semiconductor technologies used to develop powerful AI systems. China, meanwhile, has invested heavily in domestic chip production and AI companies as it seeks to reduce its reliance on American technology.

That competition creates a difficult environment for cooperation. Washington wants to maintain its technological advantage, while Beijing wants to continue expanding its own AI capabilities.

What would an AI communication system do?

The proposed mechanism would focus on communication when an AI-related incident reaches the level of a national-security concern.

Bessent has described the idea as a way for the two countries to move toward greater transparency about shared risks. The discussions are also expected to cover broader questions surrounding advanced AI and how the two governments can communicate when potential threats emerge.

The proposal is not a comprehensive agreement on AI regulation. Instead, it is a relatively narrow attempt to establish communication between two countries whose AI industries are developing rapidly while strategic trust between their governments remains limited.

The risks go beyond competition

The need for communication reflects concerns that AI could be used in ways that cross national borders.

Potential risks include cyberattacks, attacks on critical infrastructure and the misuse of AI in sensitive areas. Both countries therefore have an interest in knowing how the other might respond to a serious AI-related incident.

At the same time, cooperation will not remove the underlying competition. The United States and China are still racing to develop more capable AI systems and secure the computing power, chips and talent needed to support them.

What comes next

The proposed AI dialogue could become a small but significant part of the wider U.S.-China relationship.

Officials have indicated that the two countries are working toward regular discussions, although the scope and long-term structure of that cooperation remain developing.

The bigger question is whether Washington and Beijing can separate certain AI safety concerns from their broader technological rivalry.

For now, the talks suggest that even as the United States and China compete for AI leadership, both recognize that some risks may be difficult to manage without communication. That balance between technological competition and risk management is likely to remain an important part of the global AI debate.