US officials expect the AI notification system with China to take weeks to finalize, even as they remain optimistic it could be in place by year's end.

The Trump administration is targeting a framework for the system to be functional—and agreed to by Trump—by the time Treasury Secretary Scott Bessent next meets with Chinese Vice Premier He Lifeng in Shenzhen in two months.

The proposal, first announced by Bessent on Sunday, involves establishing benchmarks for national security incidents related to AI and securing explicit sign-on from China, which has been noncommittal. Officials emphasize the need for a framework that outlines criteria for when each country must alert the other and includes enforcement measures to prevent one-sided alerts.

The discussions highlight growing concerns about the rapid development of frontier AI models as the US and China compete for dominance in the industry. However, developing a framework with enforceable measures may take time to gain White House approval, especially with the US extending a trade truce and Trump reluctant to halt exports of advanced Nvidia chips to China.

The administration has granted a limited number of licenses this year for Nvidia to sell its H200 chip to China, a critical component for AI labs. Nvidia supporters argue that not selling the chips incentivizes Chinese companies like Huawei to develop their own chip technology, though the company has already achieved that milestone with its commercially available AI chips.

Some Trump officials also suggest the notification system may be delayed while Trump decides on the next 'AI czar' to lead a proposed 'AI Force.' Names like Bessent, Commerce Secretary Howard Lutnick, and White House AI officials Michael Kratsios and Sean Cairncross are in the mix, though it remains unclear if the appointee will take on two roles or leave their current position.

"The hotline could have helped stave off China from dumping a large portion of US government debt issued by Freddie Mac and Fannie Mae," said former Treasury Secretary Hank Paulson, referencing the 2008 financial crisis.

The administration has not said whether the AI czar will be a new role or a departure from current positions, and the selection process remains ongoing.

Source: wired