China's Xi urges U.S. to cooperate on AI

CNBC reports that Chinese President Xi Jinping urged U.S. President Donald Trump to cooperate rather than compete on artificial intelligence, during their meeting at the White House. Xi said the two sides can continue an AI dialogue, exchange views on risks and benefits, and work together to guard against misuse. He also stressed that humans should maintain control of the technology and that AI should support human progress.

The same CNBC piece links the AI agenda to ongoing bilateral discussions through senior trade negotiators. It also notes that the U.S. has restricted China’s access to advanced semiconductors used for training AI models, and that the U.S. has criticised Chinese companies over alleged illicit activity related to American AI capabilities.

A separate reference in the article says the U.S. Treasury Secretary Scott Bessent previously described a proposed “U.S.-China AI Dialogue” and that the U.S. has floated an alert system for AI incidents, while China’s Commerce Ministry confirmed that its senior trade negotiators held the first AI talks with the U.S. on Thursday.

For FX traders, the key watchpoint is whether AI cooperation language translates into concrete progress that offsets wider tariff or technology-policy friction—affecting growth expectations and risk sentiment between the U.S. and China, and therefore currencies such as the U.S. dollar and the Chinese yuan.