US and China propose AI incident alert system in talks

The U.S. has proposed a new notification system with China for artificial intelligence incidents that could threaten national security, Treasury Secretary Scott Bessent announced Sunday ahead of talks between President Donald Trump and China's Xi Jinping this week. Bessent discussed the proposal with Chinese Vice Premier He Lifeng in New York, emphasizing the importance of transparency between the world's top two AI powers. The two sides also agreed to operationalize a new "Board of Trade" first discussed when the leaders met in Beijing in May. U.S. Trade Representative Jamieson Greer said discussions are ongoing about which "nonsensitive" items could face lower tariffs, potentially including consumer goods, agricultural products, energy items, and medical devices. Trump has resisted slowing AI development, arguing it would help China catch up.