US-China Cooperation on AI Risks Essential, Says Bessent Amid Nvidia Controversy
The United States and China are set to initiate a dialogue on the risks associated with advanced artificial intelligence, according to U.S. Treasury Secretary Scott Bessent. This announcement comes ahead of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Shenzhen next week. Bessent emphasized the need for both nations to manage competition in technology while acknowledging their differences.
Bessent stated that the upcoming discussions on “superintelligence” will focus on risk management and the necessity for both countries to balance competition with leadership responsibilities. He noted that the dialogue aims to address shared risks and prevent misunderstandings between the two nations. The meeting is scheduled for November 18-19 during the Asia-Pacific Economic Cooperation (APEC) leaders’ summit.
US and China plan dialogue on superintelligence risks
The proposed dialogue will cover the evaluation and testing of advanced AI models prior to their release. Bessent highlighted the importance of ensuring that human judgment remains central to the technology. The two countries plan to exchange best practices for evaluating AI models and have agreed to establish a direct communication channel to alert each other about serious incidents involving AI technology.
This AI alert system was initially discussed during a previous meeting between Trump and Xi in September. However, Trump expressed hesitance about introducing additional safeguards, citing a desire to maintain U.S. leadership in the AI sector.
Bessent outlines trade initiatives ahead of Trump-Xi meeting
Bessent also addressed trade agreements made during earlier Trump-Xi meetings, including the establishment of a “Board of Trade” to facilitate reciprocal tariff reductions on $30 billion worth of non-sensitive goods. He noted that China has committed to purchasing U.S. agricultural products. Additionally, a proposed “Board of Investment” aims to create a structured forum for discussing market access for American companies in China.
Despite ongoing tensions regarding the U.S. trade deficit with China, Bessent reiterated that the goal is to reduce risks in the economic relationship rather than sever ties. He emphasized that the U.S. objective is to “de-risk, not to decouple” from trade with China.
Nvidia CEO Jensen Huang faces shareholder lawsuit
Bessent did not address the ongoing controversy surrounding Nvidia CEO Jensen Huang, who is under investigation by the company’s board due to reports of an affair with Alice Huang, a businesswoman linked to Chinese intelligence. The allegations have led to a shareholder lawsuit against Nvidia and Huang, filed by retail investor Mark Kistenmacher in California.
The lawsuit claims that Nvidia misled investors regarding Huang’s relationship and its potential implications for national security and the company’s business. It seeks unspecified damages and a jury trial for investors who purchased Nvidia shares between October 9, 2025, and November 8, 2026. Nvidia’s independent directors have appointed a law firm to conduct an investigation into the matter.
Nvidia shares fell 4.3% on Monday, resulting in a loss of approximately $190 billion in market value, and declined further by 5.5% by Tuesday’s close. Huang has acknowledged the affair and expressed his commitment to cooperating with the investigation while emphasizing his dedication to protecting Nvidia and U.S. national security.
