As US President Donald Trump and Chinese President Xi Jinping prepare to meet in Washington for a state dinner on Thursday, artificial intelligence (AI) is a key topic on the agenda. Tech executives from OpenAI and Nvidia are confirmed to attend the dinner, where a US proposal for an AI notification system with China will be discussed. This system is intended to function similarly to the Cold War hotline with Moscow, allowing both countries to notify each other about national security issues related to AI. Treasury Secretary Scott Bessent announced the proposal on Sunday alongside Chinese Vice Premier He Lifeng.
Despite the high-level discussions, Trump administration officials have indicated to Inner Loop that finalizing the agreement may take several weeks. They are optimistic that the hotline could be established before the end of the year. However, several details need to be formalized, including defining what constitutes a national security issue and obtaining explicit agreement from China, which has been noncommittal.
Officials aim to have a framework in place for the system by the time Bessent meets Lifeng in Shenzhen, China, in two months. The discussions reflect growing concerns over the rapid advancements in AI capabilities as both nations compete for dominance in the sector.
The administration is considering a framework that outlines the criteria for when each country must alert the other, along with enforcement measures to ensure mutual compliance. However, developing a robust framework may take time, especially as the US is expected to extend a trade truce and Trump is hesitant to halt exports of advanced Nvidia chips to China. This year, the administration has granted limited licenses for Nvidia to sell its H200 chip to China, which is essential for AI labs.
Some Trump officials have suggested that the notification system's implementation may be delayed until Trump appoints a new 'AI czar' to oversee interagency coordination. Bessent is among the candidates for this role, but it is unclear if he is the leading choice. Other potential candidates include Commerce Secretary Howard Lutnick and White House AI officials Michael Kratsios and Sean Cairncross. The previous AI czar, David Sacks, is not expected to return.
The push for Bessent is partly due to the perceived importance of the AI notification system, reminiscent of the US-China dialogue during the 2008 financial crisis, which helped prevent China from selling off a significant portion of US government debt. While some officials have expressed reservations about granting more AI authority to Lutnick, he remains a contender due to his leadership of the Center for AI Standards and Innovation, which has successfully managed crises with AI companies this summer.