June 24, 2026, (Inside AI) — U.S. Treasury Secretary Scott Bessent identified China's potential to surpass the United States in artificial intelligence as the foremost risk posed by the technology. Speaking at the Economic Club of New York on Tuesday, he placed this threat above other concerns like safety or job displacement.
"The biggest risk to AI is China getting ahead of us," Bessent stated. He noted that China's openness to dialogue on AI reflects America's current edge. "I am one of the point people on our AI policy. I am the point person in terms of the economic relationship with China," he added.
Bessent's remarks frame AI as a zero-sum contest. He argued that China's willingness to talk stems from U.S. dominance. "I could tell you that the reason the Chinese are willing to have a discussion on AI is because we are ahead, so we have to stay ahead."
This stance marks a shift from global AI risk debates. Many experts warn about alignment, bias, and mass unemployment. Bessent instead centers geopolitical rivalry. His role spans both AI policy and China economic ties, giving his words weight.
The comments come as Washington tightens tech export controls. Chips and AI tools face restrictions to slow China's progress. Yet Beijing pushes forward with state-backed AI initiatives. The race now defines bilateral relations.
Chinese foreign ministry spokesman Guo Jiakun offered a contrasting view in May. He called for cooperation. "As two leading AI powers, China and the United States need to work together to promote the development and improve the governance of AI to make sure that it will better contribute to the progress of human civilisation and common welfare of the international community."
Bessent's warning ignores domestic AI risks. Critics say overfocus on China distracts from safety research. Job automation threatens millions of workers globally. Yet the Treasury chief sees competition as the urgent priority.
Historical context shows this framing is not new. Cold War analogies often shape tech policy. The Sputnik moment rhetoric drives funding and urgency. But some analysts argue collaboration yields better outcomes than containment.
China's AI sector has narrowed gaps in key areas. Natural language processing and surveillance tech are strong suits. U.S. leads in foundational models and chips. The margin is shrinking, fueling Bessent's alarm.
Economic dimensions amplify the stakes. AI could add trillions to GDP. The leading nation may set global standards. Bessent's Treasury role ties this to trade and finance levers. Sanctions and investment curbs are on the table.
International governance remains fractured. U.S.-China talks have stalled before. Bessent's comments may harden positions. Yet dialogue is the only path to shared norms. The world watches how this tension resolves.
