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 said the mechanism aims to increase transparency between the world's top two AI powers, following discussions with Chinese Vice Premier He Lifeng in New York. The two sides also agreed to operationalize a new "Board of Trade" first discussed in May. U.S. Trade Representative Jamieson Greer said talks on lowering tariffs for "nonsensitive" items are ongoing, potentially covering consumer goods, agricultural products, energy, and medical devices. Trump has resisted slowing AI development, arguing it would help China catch up.