On the Chinese side, the talks could be led by Vice Premier He Lifeng, Bessent's protocol counterpart, but alternatives such as China's No. 7 official Ding Xuexiang may be considered, according to the second source, who also spoke on condition of anonymity.
Ding, a confidant of Xi and a member of the ruling Communist Party's powerful seven-person Politburo Standing Committee, coordinates China's technology, AI and semiconductor policies.
Reuters could not determine the location or identity of other participants, though Kratsios and China's science and technology minister, Yin Hejun, could attend the talks, the second source added.
The final agenda and participants remain in flux, the sources cautioned.
The White House declined to comment on the AI talks. The State Department did not respond to a request for comment. China's foreign, science and industry ministries, as well as the National Development and Reform Commission and cyberspace regulator, did not immediately respond to requests for comment.
On Tuesday, Kratsios told reporters in North Carolina that he had a "great" meeting with Yin on the sidelines of a G20 innovation summit in the U.S. this week. Bessent said he had "limited" exchanges on AI with Chinese officials at this week's G20 finance meeting.
The U.S. urged G20 members to take a hands-off approach to AI regulation and avoid creating rules for the technology at the same innovation summit. China signed the Carolina Principles, an agreement aimed at discouraging the development of AI-specific regulations, in a rare show of tech alignment with the U.S.
Kratsios' office did not immediately respond to a request for comment.
HIGH IMPORTANCE
Chinese officials have repeatedly stressed the importance of the AI talks in preparatory meetings with U.S. counterparts, and view them as a major deliverable of the U.S.-China leaders' summit, according to the two sources and another one familiar with the matter. Reuters is reporting this development for the first time.
In the past week, China's cyberspace regulator publicly warned about "extreme AI loss of control risks" and a state media-affiliated blog criticized Anthropic, emphasizing that any limits on frontier AI should apply equally to Chinese and U.S. models. Chinese firms have in recent months unveiled what they describe as Mythos-like products.