U.S. Treasury Secretary Scott Bessent has warned that the United States and China must face reality about their differences as they work together on artificial intelligence (AI) while competing for global dominance in the technology. Speaking in New York, Bessent emphasized the need for a balanced and reciprocal relationship during his upcoming trip to China for meetings with President Xi Jinping.
The discussions, set to take place alongside the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, will focus on “superintelligence” (SI), a term preferred by the Trump administration. The goal is to manage shared risks and avoid misunderstandings between the two nations’ systems. Bessent highlighted the importance of exchanging best practices for testing AI models and ensuring human control over the technology.
He also mentioned an agreement to create a direct channel for alerting each other to serious incidents involving AI. While President Trump previously expressed reluctance to add new safeguards to preserve U.S. leadership, both leaders agreed on the need for such measures during their September meeting.
Bessent stressed that as SI advances, managing risks and reconciling competition with leadership responsibilities will be crucial. He acknowledged that the two nations have differing interests and approaches to challenges.
The remarks came amid controversy surrounding Nvidia CEO Jensen Huang, who is facing an internal investigation following allegations of a potential affair with a Chinese-linked businesswoman. While this issue was not directly addressed during Bessent’s comments, it underscores broader tensions in U.S.-China relations.
Bessent also referenced earlier trade agreements between the two countries, including efforts to reduce tariffs and increase market access. He reiterated that while reducing the U.S. trade deficit with China remains a priority, the focus is on “de-risking” rather than completely separating trade ties.