China Is Taking AI Safety Seriously. So Must the U.S.

The article refutes the U.S. notion that China disregards AI safety, asserting that Beijing is actively prioritizing it with significant regulatory action, increased national standards, and official emphasis on control as a prerequisite for development. It highlights a critical missed opportunity for U.S.-China dialogue on shared, high-stakes AI risks, including potential biological misuse and loss of control, despite China's openness to international collaboration. The piece stresses that managing these global AI threats, which are increasingly acknowledged by experts in both nations, necessitates renewed bilateral engagement, technical trust-building, and coordinated incident response to mitigate broad societal and economic implications.

Analysis

Contrary to a prevailing narrative in U.S. policy circles, China is actively and aggressively prioritizing AI safety as a prerequisite for technological advancement, not as a constraint. This is evidenced by President Xi Jinping's direct involvement in AI risk discussions, the inclusion of AI safety in the National Emergency Response Plan, and a significant acceleration in regulatory actions, including the issuance of more national AI standards in the first half of 2025 than in the prior three years combined and the removal of over 3,500 non-compliant AI products. The stalled bilateral dialogue between the U.S. and China, with no high-level meetings since May 2024, represents a significant missed opportunity to manage shared, high-stakes threats. These risks, including the potential for AI-assisted biological threats and catastrophic loss-of-control scenarios, are acknowledged by experts and government bodies in both nations. While China has shown openness to international collaboration through dialogues with the UK and contributions to global safety reports, the lack of a direct U.S.-China channel creates a volatile and uncertain environment, undermining efforts to establish common safety protocols and incident response mechanisms for a technology with global implications.

Key Decisions for Investors

• Investors with exposure to the Chinese AI market must heighten due diligence on portfolio companies' adherence to Beijing's rapidly evolving and stringent safety regulations, as non-compliance presents a clear and immediate business risk.
• Monitor geopolitical indicators for any revival of the U.S.-China AI dialogue, as renewed engagement would be a significant de-risking event for the sector, while continued inaction amplifies uncertainty and the potential for divergent technology standards.
• Consider that AI companies developing and transparently implementing robust safety and risk management frameworks may secure a long-term competitive advantage by mitigating regulatory threats and building trust, making this a key factor for long-term allocations.
• Recognize the heightened tail risk in sectors where AI intersects with biological or chemical applications, as any AI-related safety incident in these areas could trigger severe and widespread regulatory crackdowns globally.