Anthony Albanese has kept tight-lipped on China’s offer to co-operate on artificial intelligence amid tensions between the government and the Trump administration.

Chinese ambassador Xiao Qian wrote an op-ed this week saying Beijing was keen to take a “more open attitude” to the free-trade agreement with Australia.

Mr Xiao said that included bolstering “co-operation in traditional areas such as agriculture and mining” but also exploring “new growth areas in emerging fields like artificial intelligence” – a convenient offer against a backdrop of fierce AI competition with the US.

Though, even as lacklustre Australian defence spending and US tariffs strain Canberra’s alliance with Washington, the Prime Minister was hesitant to embrace or reject the offer on Tuesday.

“We will determine our policy,” Mr Albanese told reporters in Hobart.

However, he was quick to spruik the benefits of free trade with China.

“Of course, we have a free-trade agreement that was done by the Coalition government when they were in office,” Mr Albanese said.

“What we have done is to get rid of the more than $20bn of impediments of goods that were stopped from going to China.

“It’s made an enormous difference and we have, indeed, products like wine and barley have not just bounced back – they’re back higher than they were before.”

He also spruiked his upcoming trip to China, calling it an “important trading partner for Australia”.

“Twenty-five per cent of our exports go to China,” Mr Albanese said.

“What that means is jobs and one of the things that my government prioritises is jobs.”

Pressed on whether he was open to having AI covered by the China-Australia Free Trade Agreement, he dodged it, saying his “priority is jobs”.

China is in an AI race with the US.

The launch of DeepSeek in January dealt the first serious blow to the US’ global leadership in the space, with the ensuing tech sell-off wiping about $US1 trillion ($A1.5 trillion) in value off American titan Nvidia.

The Trump administration earlier this year announced a $US500bn investment in AI, eclipsing all other countries as the clear frontrunner.

About the same time, China launched a AI investment fund with an initial $8.2bn.

But with DeepSeek free and offering capabilities comparable to American counterpart OpenAI, the AI race may not be won by those who splash the most cash.

Written by Marsha Blackburn
U.S. Senator

Washington, D.C. – Last week, the Senate passed President Donald J. Trump’s landmark legislation to make America great again, the One Big Beautiful Bill (OBBB).

Among its provisions, there is so much to celebrate: The largest tax cut in U.S. history, including reduced taxes on overtime and tips and a $6,000 enhanced deduction for seniors; permitting reforms to make America energy dominant; funds to complete the southern border wall and hire thousands of Border Patrol agents; historic investments to strengthen our military; the elimination of hundreds of billions of dollars in far-left, Green New Deal spending; and so much more.

As this monumental legislation heads to President Trump’s desk, however, Tennesseans and Americans across the country also have reason to celebrate what wasn’t included in the OBBB: a moratorium that would have prevented states from protecting their citizens from the unintended consequences and harms of artificial intelligence for 10 years.

During the voting process, I introduced an amendment to strike this measure from the legislation and ensure that state governments can continue to enact common sense safeguards for this emerging technology. Thankfully, my amendment was adopted by an overwhelming bipartisan majority: 99-1.

It’s rare to see such unanimous support in Congress on any issue, but when you look at the potential consequences of an AI moratorium, it’s easy to see why senators on both sides of the aisle united to defeat this measure.

While AI is driving new innovations that have the potential to transform our economy, it’s also exposing Americans to serious harms, including copyright infringement, unauthorized replication of individuals’ voice and likeness, and AI-generated sexual abuse material, including depictions of children.

These issues require legislative action to protect vulnerable Americans. Yet when it comes to transformative technologies like AI, Congress has failed to enact nationwide, federal standards. As Congress works on these issues, state governments across the country are standing in the gap to prevent Big Tech from exploiting children, creators, and conservatives.

Last year, Tennessee enacted the ELVIS Act, which protects our state’s incredible musicians and artists from having their voice and likeness used in AI-generated songs and content. Under the leadership of Governor Sarah Huckabee Sanders (R.), Arkansas has protected its residents from AI copyright infringement and the generation of sexually explicit images of real people, including children. And North Dakota recently adopted a law that prohibits the use of AI-powered robots and drones from stalking and harassing people.

These states are among more than two-dozen that have enacted AI safeguards in just the last year. That’s why, ahead of the amendment vote, 37 state attorneys general and 17 Republican governors spoke out against the moratorium. Until Congress passes federally preemptive legislation like my bipartisan Kids Online Safety Act, the NO FAKES ACT, and an online privacy framework to protect consumers’ data, these states have every right to take action to protect their residents.

In many ways, that’s how our federal, constitutional government is supposed to work. When a new challenge arises, state governments can act quickly to provide solutions. And as these different approaches play out, Congress, if necessary, can choose among the best of them to establish nationwide standards. By striking the AI moratorium from the OBBB, the Senate preserved this essential process.