Trump and Xi may not resolve their AI rivalry, but AI safety could open door for dialogue

Artificial intelligence is becoming a crucial topic in the US-China tensions. As leaders meet, they may explore cooperation on AI while competing over technology control, impacting economy and national security.

Artificial intelligence is emerging as a new front in the widening US-China rift. As US President Donald Trump and Chinese President Xi Jinping meet this week, the two leaders are expected to discuss an AI dialogue mechanism to address safety and national security risks.

In fact, Tuesday’s front page of the People’s Daily, the official newspaper of the Chinese communist party (CCP), ran an article saying that the US and China should “make AI a new frontier for China-US cooperation” and “make good use of the intergovernmental dialogue mechanism on AI”.

But behind the talk of cooperation, there's a deeper contest over who controls the technologies, chips and computing infrastructure that could shape the next phase of the global economy.

We’re leading China in AI: Trump

For Washington, maintaining its lead in advanced AI has become an economic and strategic priority. In fact, Trump recently said, “We’re leading China in AI, and frankly, I want to ⁠keep it that way, because whoever wins AI, wins.”

Moreover, the US has already restricted China's access to some advanced semiconductors and AI-related technologies, though Washington continues to debate how far those restrictions should go.

China invested $184 billion in AI in four years

China, meanwhile, is treating AI as an important part of its economic transformation. The New York Times has reported that Beijing is directing significant resources towards AI even as Chinese economists question whether the technology can generate enough jobs or provide an immediate boost to the economy.

The report estimated that state-led funds invested more than $184 billion in AI firms between 2000 and 2023, and last year, the government and state-owned banks pledged hundreds of billions more. Private AI investment in China is far lower than in the United States, where private sources poured $285 billion into the technology in 2025 alone.

That makes AI competition different from the traditional US-China trade dispute.

Why does AI competition have deeper consequences?

Tariffs can affect the movement of goods, while restrictions on chips, computing power and advanced AI models can impact the technological capacity of different industries.

The rivalry is also creating a difficult balance between cooperation and competition. As US officials and technology executives have raised concerns about the risks posed by increasingly powerful AI systems, China’s foreign ministry responded, saying “fearmongering, confrontation and vicious competition will only disrupt the process of global AI governance”.

Who controls AI?

At the summit, the US and China could seek common ground on AI safety, even as their rivalry over tech control continues. The Guardian reported that officials have already discussed about establishing a channel to discuss AI risks, while Chinese state media has also called for AI to become a new area of US-China cooperation.

The broader message from the summit is that AI is no longer simply a technology-sector issue. It is also linked to trade, industrial policy, national security and economic power. As Washington and Beijing try to manage their relationship, control over advanced AI could become one of the most consequential bargaining points between the world's two largest economies.

About the Author

Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.

^{Get Latest real-time updates}

Stay updated with the latest Trending, India, World and US news.

HomeNewsWorldTrump and Xi may not resolve their AI rivalry, but AI safety could open door for dialogue