Bessent urges US and China to stay clear-eyed on AI cooperation and competition

US Treasury Secretary Scott Bessent said the United States and China should stay clear-eyed as they cooperate and compete on artificial intelligence. He spoke at the 60th anniversary gala dinner of the National Committee on US-China Relations in New York on November 10, 2026.

What happened

Bessent said the two countries should "harbor no illusions" about the path ahead. As the technology advances, he said, both nations will need to show how they can "reconcile the demands of competition with the responsibilities of leadership."

He also said he will join President Donald Trump next week for the third meeting this year with Chinese President Xi Jinping. According to Bessent, the summit is meant to advance the bilateral dialogue on AI, including advanced model testing.

The remarks were delivered at an event marking six decades of the National Committee on US-China Relations. They were then carried by international news agencies and broadcasters in the early hours of Wednesday in Asia.

Why it matters

AI sits at the center of the technology rivalry between the world's two largest economies. Supply chains, chip access and corporate investment across Asia all depend on how Washington and Beijing manage that rivalry. A structured dialogue on model testing would add a new channel to a relationship that already covers trade and finance.

So far, the two governments have refrained from making any commitment to limit the advancement of AI. Bessent's remarks therefore describe a dialogue on testing, not a restriction on development. His wording also shows that Washington intends to keep competing while it talks.

The fact that a Treasury Secretary, rather than a technology official, framed the issue is also notable. It places AI alongside the economic and financial agenda that the two leaders have discussed in their earlier meetings this year.

For investors, the message is that US-China technology policy is likely to stay a live factor for regional markets, with the summit as the next point of reference.

What to watch next

The main event is the Trump-Xi meeting next week, the third between the two leaders this year. Observers will look for any outcome on AI dialogue, including the scope of advanced model testing and who takes part.

It will also matter whether the two sides move from discussion to any joint commitment. So far, neither government has agreed to limit AI development. Any shift from that position would be a notable change in tone for the technology sector in Asia and the United States.