Bessent proposes AI safety notification system in US-China talks before Trump-Xi summit

US Treasury Secretary Scott Bessent proposed a new AI safety notification mechanism during talks with Chinese Vice Premier He Lifeng in New York on Sunday, ahead of the Trump-Xi summit this week. The proposal aims to establish a US-China AI dialogue focused on national security, including a system to notify each other of AI-related incidents reaching that level. Bessent emphasized transparency between the world's top two AI powers, though China's response was unclear. Export controls on AI chips were not part of the mechanism talks. The discussions also covered operationalizing tariff cuts on non-strategic goods, with potential candidates including Chinese consumer goods and US energy or agricultural products. No progress was reported on critical minerals flows or unresolved pledges from May, including increased US agricultural purchases and Boeing aircraft orders.