US and China agree to AI incident alert system ahead of Trump-Xi meeting

US and Chinese officials discussed creating a communication mechanism for AI incidents during talks in New York on Sunday, ahead of this week's Trump-Xi summit. Treasury Secretary Scott Bessent called the engagement "very successful." The eight-hour talks, led by Chinese Vice Premier He Lifeng, included discussions on a proposed "US-China AI dialogue" with a notification system for national security-level AI incidents. Both sides agreed to meet again, with trade truce extension and AI guardrails also on the agenda. Officials explored tariff reductions on non-sensitive goods, including consumer products and energy, while ensuring critical minerals flow. Analysts expect only a short-term truce, with Trump and Xi slated to meet again at APEC in November and the G20 in December.