U.S. Treasury Secretary Scott Bessent said on Friday that he believed that Washington has the makings of a deal with China and that he was "optimistic" about the path forward.

China’s cyber regulator on Thursday said it had held a meeting with Nvidia over what it called “serious security issues” with the company’s artificial intelligence chips. It said US AI experts had “revealed that Nvidia’s computing chips have location tracking and can remotely shut down the technology”.

Nvidia must produce "convincing security proofs" to eliminate Chinese users' worries over security risks in its chips and regain market trust, a commentary published by China's state-run media People's Daily said on Friday.

In the meeting, Chinese regulators demanded that the U.S. chip company provide explanations on “backdoor safety risks” of its H20 chips to be sold in China and submit relevant materials, the office said.