U.S. Treasury Secretary Scott Bessey has introduced a proposal for an artificial intelligence incident notification system to mitigate security risks. This move comes as Washington prepares for a high-profle summit between President Trump and Chinese leader Xi Jinping at the White House.
The Bessey-Greer push for AI transparency in New York
During a press briefing at the JPMorgan Chase headquarters in New York, Treasury Secretary Scott Bessey outlined a framework to identify and report AI-related threats to national security. According to the report, Bessey aims to move the relationship between the United States and China from a state of opacity to one of shared visibility. This effort is intended to prevent unanticipated hacks or the weaponization of AI that could targeet critical infrastructure or military assets.
Bessey’s proposal reflects a strategic attempt to manage the inherent volatility of the AI arms race. While the U.S . administration remains committed to maintaining a technological edge over China, the notification system suggests a recognition that accidental escalations in AI capabilities could trigger uncontrollable international crises. By establishing a reporting mechanism, Washington hopes to create a safety net that functions even as the two nations compete for dominance in the sector.
A 2025 Beijing proposal and the new Board of Trade
The proposed notification system is part of a larger diplomatic architecture that includes the operationalization of a new "Board of Trade." This institution is based on a concept first discussed by leaders during a 2025 meeting in Beijing. The goal of this Board is to create a permanent structure for reporting, responding to, and resolving cross-border technology incidents through a combination of research laboratories and structured dialogue.
This institutionalization of dialogue marks a shift toward managing the friction between the two superpowers. Rather than relying on ad-hoc communications, the Board of Trade would provide a predictable framework for dispute resolution. Through a temporary research laboratory and a permanent board, the two governments could theoretically agree on shared procedures for managing the fallout of a technology-driven incident. This follows a pattern of attempting to create "guardrails" in high-stakes geopolitical competitions, similar to previous efforts to manage nuclear or maritime tensions.
Lowering tariffs on medical devices and energy supplies
Beyond the realm of artificial intelligence, U.S. Trade Representative Jamieson Greer indicated that negotiations are underway regarding a list of "non-sensitive" goods. As the report notes, these discussions involve potential tariff reductions on several categories, including:
- Agricultural products and food/beverage items
- Energy equipment and supplies
- Consumer medical devices
- Novel consumer goods
This "two-track" strategy allows the Trump administration to maintain a hard line on sensitive technology and intellectual property while seeking economic relief in less contentious sectors.. By easing trade friction in areas like medical supplies and energy, the U.S. may be attempting to build the necessary political and economic capital required to navigate the much more difficult negotiations surrounding AI and cybersecurity.
Unresolved mechanics of the 2025 Motion and AI metrics
Despite the momentum behind these proposals, several critical details regarding the implementation of the "2025 Motion" remain unverified. It is currently unclear how the proposed "not-for-profit" label for product certification would be enforced or what specific AI deployment metrics both nations would be required to share. Furthermore, the source does not specify the exact protocols for the "monitored escalation" process that would follow a reported incident.
The effectiveness of this system will likely depend on the willingness of Chinese officials, such as Vice Premier He Lifeng, to commit to the same level of transparency as the United States. Without a clear understanding of how these metrics will be audited or how "non-sensitive" goods will be categorized, the proposal remains a framework of intent rather than a finalized treaty. The White House is still preparing to negotiate a balanced approach that recognizes the U.S.'s technological edge while encouraging cooperative oversight , leaving many of the operational mechanics in doubt.
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