Bessent Says U.S. and China Should Cooperate and Compete on AI With No Illusions

Treasury Secretary Scott Bessent said the U.S. and China should "harbor no illusions" as they both cooperate and compete on artificial intelligence. The remarks follow an agreement reached during Chinese President Xi Jinping's September visit to launch a bilateral AI dialogue with a communications channel to help defuse serious incidents.

Why it matters: A formal U.S.-China AI channel could shape export controls, model safety norms, and the geopolitical risk that companies building AI products face in both markets.