Bessent: “No Illusions” About China as Trump Prepares for Shenzhen Summit on AI and Trade

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A Warning Before the Handshake

Speaking in New York on Tuesday, Bessent told the National Committee on US-China Relations that Washington and Beijing should "harbor no illusions" about their differences. He said their interests "will not always coincide" and that their approaches to major challenges will not always match.

At the same time, he said the US wants to "build a constructive relationship on the basis of balance and reciprocity." Bessent will travel to China next week for the meeting with Xi, to be held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on November 18–19. It will be the third Trump-Xi meeting this year.

A New Channel on "Superintelligence"

The Trump administration uses the term "superintelligence" (SI) for AI systems that could one day match or exceed human abilities. Bessent said the summit will advance a bilateral dialogue on the subject. Its stated aim is to guard against shared risks and avoid misunderstandings between "our two systems."

The sides also plan to compare methods for testing advanced AI models before release. Bessent stressed keeping "human judgment" firmly in command of the technology. He added that both governments have agreed to set up a direct channel for warning each other about serious incidents.

That alert channel was agreed when Xi visited the White House in September. At the time, Trump also said he was reluctant to add new guardrails because he wanted to preserve American leadership in AI.

Tariff Cuts and a Persistent Deficit

Bessent also pointed to trade steps agreed at the earlier summits. A "Board of Trade" is to decide on mutual tariff cuts covering about $30 billion of non-sensitive goods in each direction. China has also pledged to buy more American farm products.

A similar "Board of Investment" is planned. It would be a forum for market access for American companies in China, and for what Bessent called "increased predictability" for Chinese firms.

He repeated that the US trade deficit with China remains a source of friction. Washington's goal, he said, is to "de-risk, not to decouple." In other words, it wants to reduce its vulnerabilities without cutting trade ties altogether.

The Nvidia Shadow

Bessent did not mention the controversy around Nvidia chief executive Jensen Huang. On October 29, The New York Times reported that US intelligence officials suspected a Chinese businesswoman, Alice Huang, of working for China's intelligence services. She is a former executive of the Singapore-based firm Megaspeed and is not related to him.

Nvidia's board announced an independent investigation on Sunday. Huang has reportedly acknowledged an affair with the woman and has said he will cooperate with the review. The company says it has no reason to believe US national security or company secrets were compromised.

China's foreign ministry has rejected the allegations as groundless. The allegations have not been proven. On Monday, Trump said the FBI was looking into the matter. The Times also reported that Trump had been briefed on the intelligence earlier and chose not to act, a claim Reuters and AFP relayed from the Times reporting.

Background and Outlook

Bessent opened his speech with a historical image: the first American trading voyage to China in 1784, which carried ginseng in exchange for tea, porcelain and silk. He argued that the relationship will depend on the "wisdom" and "will" to let common purpose prevail over competing interests.

It is unclear whether Huang will join the delegation in Shenzhen. He attended the earlier summits in Beijing in May and Washington in September. A fourth Trump-Xi meeting is expected in December at the G20 summit in Miami.

The coming talks will test whether a cautious, verify-first approach can yield results from a one-party state that denies espionage claims while competing hard for technological leadership. Washington's own tone, "no illusions" combined with open channels, suggests that trust remains in short supply.

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Sources

1. Reuters – "US and China should stay clear-eyed on AI cooperation and competition, Bessent says": https://www.reuters.com/world/china/us-china-should-stay-clear-eyed-ai-cooperation-competition-bessent-says-2026-11-11/
2. Newsroom America – "Bessent Says US Wants to 'De-Risk, Not Decouple' From China as Leaders Prepare for Shenzhen Summit": https://newsroomamerica.com/a/DojJZMz4wMw4AIMOzpnujdE8lID/treasury_secretary_scott_bessent_tells_the_national_committee_on_u_s_china_relations_that_washington_seeks_balance_and_reciprocity_with_beijing_citing_new_trade_and_investment_boards_and_an_ai_dialogue.html
3. Bloomberg Government – "Bessent Hails US-China Engagement, Sees More Talk on AI Models": https://news.bgov.com/bloomberg-government-news/bessent-hails-us-china-engagement-sees-more-talk-on-ai-models
4. Anadolu Agency – "US, China agree on AI dialogues ahead of Washington summit": https://www.aa.com.tr/en/americas/us-china-agree-on-ai-dialogues-ahead-of-washington-summit/4063481
5. Business Standard – "Nvidia CEO Huang probe: China calls 'spy narrative' unsubstantiated": https://www.business-standard.com/world-news/nvidia-ceo-huang-probe-china-calls-spy-narrative-unsubstantiated-126110900444_1.html
6. Arab News (AFP) – "Nvidia announces probe into CEO Huang amid reports China spied on him": https://www.arabnews.pk/world/nvidia-announces-probe-into-ceo-huang-amid-reports-china-spied-on-him-3006505
7. ARY News – "Nvidia fiasco: Trump says FBI probing Jensen Huang": https://arynews.tv/nvidia-fiasco-trump-says-fbi-probing-jensen-huang

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