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The US-China Economic and Security Review Commission (USCC) reported that leading Chinese AI firms, including Alibaba and DeepSeek, declined to meet with a bipartisan US delegation during its July visit to Beijing, Hangzhou, and Shanghai. Commission chairman Randy Schriver stated that firms expressed fear that meeting with the commission could lead to their inclusion on the US entities list. This reluctance occurred despite the Chinese government's expressed confidence in its AI sector and the USCC's request for meetings. The commission noted this as a contradiction between government rhetoric and corporate behavior. Meanwhile, US Treasury Secretary Scott Bessent is expected to lead upcoming bilateral negotiations on with Chinese counterparts ahead of President Xi Jinping's visit to Washington.
The US-China Economic and Security Review Commission (USCC) disclosed that leading Chinese artificial intelligence firms declined to meet with its members during a July visit to Beijing, Hangzhou, and Shanghai. This was the commission's first visit to China in seven years, described as a fact-finding mission to inform its annual report to Congress on China's military, economic, and technological developments.
USCC Chairman Randy Schriver stated that firms told the delegation they were afraid of being placed on the US entities list if they met with the commission. Schriver noted that the delegation had requested meetings with companies including Alibaba and DeepSeek in Hangzhou but was not allowed to visit them. Commissioner Chris Slevin highlighted a contradiction between the confidence expressed by Chinese government officials regarding AI and the reluctance to allow meetings with AI labs.
The Chinese embassy in Washington did not immediately respond to a request for comment, though it had previously welcomed the USCC's visit. Beijing has historically criticized the commission's annual reports. Despite these tensions, Schriver expressed moderate optimism about upcoming AI dialogue, stating that both sides recognize the necessity of dialogue to manage risks.
US Treasury Secretary Scott Bessent is expected to lead the US side in bilateral negotiations on with Chinese counterparts ahead of President Xi Jinping's visit to Washington later this month. Sources told the South China Morning Post that both sides are preparing for dedicated talks, though they remain divided on scope, with China seeking a broader conversation and the US pushing to focus on .
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This incident highlights the deepening friction between US legislative oversight and Chinese corporate interests in the AI sector. The refusal to engage with a congressional body signals that Chinese AI firms are prioritizing protection from US sanctions over diplomatic or informational exchange with US policymakers. This dynamic complicates efforts to establish stable frameworks between the two nations. As the US and China prepare for formal talks on and governance, the lack of direct corporate engagement with US oversight bodies suggests that trust deficits remain significant. The outcome of these high-level negotiations will likely determine whether technical and policy cooperation can proceed despite underlying geopolitical tensions and regulatory risks.
The refusal of Chinese AI firms to engage with US congressional oversight bodies underscores the significant impact of US sanctions policy on corporate behavior in the AI sector. It indicates that the threat of being added to the entities list is a powerful deterrent against direct interaction with US policymakers, potentially isolating US oversight bodies from direct corporate insights.
This development complicates the diplomatic efforts to establish frameworks between the US and China. While high-level officials are preparing for talks on and governance, the lack of engagement at the corporate level suggests that trust deficits and regulatory fears remain substantial barriers to cooperation.
The incident highlights the tension between China's stated confidence in its AI capabilities and the practical constraints faced by its firms due to US regulatory actions. This dynamic may influence the tone and outcomes of upcoming bilateral negotiations, as the US seeks to leverage its position as a global AI leader while managing geopolitical risks.
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Why can ethical evaluation not be reduced to one model score?
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Monitor the outcomes of the upcoming bilateral talks led by Treasury Secretary Scott Bessent and Chinese counterparts. Watch for any changes in US sanctions policy regarding Chinese AI firms or specific entities like Alibaba and DeepSeek. Observe whether the USCC's annual report includes new recommendations for sanctions or regulatory actions based on the findings from the July visit. Track Chinese government responses to the USCC's report and any subsequent diplomatic statements regarding the scope of AI cooperation.
The upcoming bilateral negotiations on led by Treasury Secretary Scott Bessent and Chinese counterparts are a key next step. The scope of these talks, particularly whether they focus on safety or broader governance, will be closely watched.
Any updates to the US entities list or sanctions policy regarding Chinese AI firms, including Alibaba and DeepSeek, will be significant. The USCC's annual report may include new recommendations based on the findings from the July visit.
Chinese government responses to the USCC's report and the upcoming diplomatic visits will provide insight into Beijing's stance on AI cooperation and its willingness to engage with US oversight bodies.