Daniel Russel is vice-president for international security and diplomacy at the Asia Society Policy Institute. He previously served as special assistant to U.S. President Barack Obama and Assistant Secretary of State for East Asian and Pacific affairs at the U.S. State Department from 2013 to 2017. He was a major figure in the Obama administration's "pivot towards Asia" strategy. In a recent interview with James Chau of China-US Focus in Tokyo, Daniel Russel shares his concerns on U.S.-China rivalry in new technologies and its impact on bilateral relations and the globe as well.

China and the United States held their first governmental dialogue on artificial intelligence in May. But skepticism arose about its value because the U.S. continued to impose technological restrictions on China. Here are some suggestions for how to move forward toward greater understanding and mutual security.

By insisting on protocols that enable cross-national interoperability in a world that lacks trust, the concept aims to break the grip of a handful of American tech giants while offering a chance for open-source systems to reestablish the sovereignty of all.

Given the high stakes, a coordinated effort to rein in artificial intelligence is crucial. Talks between the two powers must communicate mutual concerns, dispel misunderstandings and prevent this emerging technology from becoming a new source of tension.

Security threat worries are unfounded. A ban of the platform would only undermine the confidence of international investors and pose significant risks to global economic development. Investors should pay close attention to these risks when making investment decisions.

The international financial infrastructure has long been dominated by Western institutions. China’s advances in digital currency could help spread its influence on global commerce enough to challenge the hegemony of the U.S. dollar.

By starting and sustaining a tech war against China, Washington has placed itself on the wrong side of history. Like its trade war, the battle in the high-technology sector will turn out to be difficult to win.

China is on the cutting-edge of information technology, providing consumer electronics and telecommunications equipment to much of the world. Its own digital infrastructure is due for a modest upgrade that will be rolled out by 2023.

In a field where competition for science and technology, rule-making and dominance are natural, China and the United States have both conflicting a complementary interest. There is a lot of room for cooperation.

Correctly understanding each other’s policies will avoid sinking into an infinite negative loop. Speculation about China-U.S. financial decoupling has returned. But politicization of financial matters will only do further damage to the already deteriorating bilateral relationship.