US, China agree to explore AI hotline ahead of Trump-Xi summit

Washington and Beijing have agreed to look at setting up a dedicated channel for discussing artificial intelligence, US and Chinese officials said after about eight hours of talks in New York on Sunday that were meant to prepare the ground for a summit between US President Donald Trump and Chinese President Xi Jinping this week.

The meeting was led on the US side by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, and on the Chinese side by Vice Premier He Lifeng. It was held at JPMorgan Chase's headquarters in New York. Li Chenggang, who was elevated to a top-level international trade representative post shortly before the talks, was also present. The Chinese delegation did not address reporters.

"We just had a very successful engagement with the Chinese on trade and AI," Mr Bessent told reporters afterwards. He said the two sides had discussed creating a "US-China AI dialogue", and that Washington had proposed a "notification mechanism" between the two countries. Such notifications, he explained, would cover potential "incidents" — situations that "rise up to a national security level from AI". Both sides have agreed to meet again, he said. A source familiar with the matter said Mr Bessent and Mr Trump also spoke one-on-one during the day.

Chinese state media described the meetings as "candid, in-depth and constructive". Xinhua news agency said the two sides discussed key economic and trade issues of mutual interest, including carrying out the consensus reached in earlier consultations and promoting bilateral trade and investment. It confirmed that officials also held a dialogue on AI-related issues, but gave no further details.

The talks come amid growing concern, in both countries and among researchers worldwide, about the risks posed by increasingly capable AI systems. Even as the two economies compete for technological supremacy, that shared concern has created a rare incentive for cooperation.

Mr Greer said it was "imperative that we are able to work together". Both sides are trying to ease tensions over trade, technology and other strategic issues, including a possible extension of the current trade truce and the framing of guardrails for AI development.

On trade, Mr Greer said teams "are continuing to work through" the possibility of mutual tariff cuts on certain goods. The aim is to identify "non-sensitive" products that could be considered separately from other trade measures in future. Such items could include consumer goods from China and, on the US side, energy, agricultural products and goods such as medical devices. Beyond those, US officials are also seeking assured supplies of rare earth magnets and critical minerals that are vital to American manufacturers. Earlier negotiations saw China pledge to buy US agricultural goods, and whether those commitments are being met may also come under scrutiny.

Another issue on the table is US economic pressure on Iran, with Washington's conflict with Tehran now in its seventh month. China is a leading buyer of Iranian oil and a key diplomatic backer of Iran.

Analysts have cautioned that expectations for the Trump-Xi meeting, planned for Thursday at the White House, are low. "One of the only things we can hope for in the short term is a truce, and that this will likely continue through the remainder of this year," said Kurt Campbell, a former US deputy secretary of state. He added that he expected Mr Trump to announce his intention to meet Mr Xi two more times.

Working-level meetings could continue into Monday, a source familiar with the discussions said.