US Treasury Secretary Scott Bessent warned on Tuesday that the United States cannot afford to slow its artificial intelligence race with China. He argued that maintaining America’s AI advantage is critical to national security and the economy.

"Beating China — there is no day after tomorrow if China wins at this," Bessent said during a Breitbart News "State of the Economy" policy discussion. "If they were to pull ahead of us on AI, then nothing else matters."

Rejecting Calls for an AI Pause

Bessent rejected calls for a temporary AI pause, arguing that geopolitical rivals would continue advancing regardless of US policy shifts. He credited America’s technology ecosystem, including its chip industry and access to capital, for helping the U.S. establish its current lead.

"We can’t pause," Bessent said. "You can’t, because the Chinese won’t pause. Even the North Koreans, they won’t pause."

Community Backlash Against Data Centers

While defending continued AI infrastructure expansion, Bessent criticized data-center companies, hyperscalers and AI labs for how they have handled local opposition. He gave the industry a "D-minus" for its community outreach, saying companies have "taken their credibility to the edge" and need to rebuild trust by explaining the economic benefits of data centers.

Bessent alleged that some opposition is influenced by Chinese propaganda, while saying companies still need to take responsibility for communicating with residents. He acknowledged that the industry’s approach had fueled a backlash.

Infrastructure Spending vs Public Sentiment

U.S. tech companies committed to more than $850 billion in data-center leases in the first quarter of 2026, marking a record as the AI infrastructure buildout accelerates. However, a Gallup survey in May found that 71% of Americans oppose building data centers near their communities, compared with 53% who oppose nearby nuclear power plants.

President Donald Trump has stepped up his defense of data centers, urging communities to "let Data Reign." His comments have faced criticism from Alexandria Ocasio-Cortez (D-N.Y.) and fellow Republican Marjorie Taylor Greene.

Last week, Nvidia Corp (NASDAQ: NVDA) CEO Jensen Huang called on G20 leaders to accelerate AI infrastructure and adoption, warning that excessive regulation and fear could cause countries to miss out on the next major technological revolution.

US Treasury Secretary Scott Bessent highlighted a decline in Chinese manufacturing employment while outlining plans to coordinate trade strategies with G-7 nations.

Bessent stated that manufacturing jobs in China are decreasing. He expressed a desire to collaborate with G-7 countries and other partners to manage trade relations with China.

Strategic Context

The comments reflect a broader focus on aligning international trade policies. Bessent emphasized the importance of multilateral coordination through the G-7 framework.

No specific financial figures or quantitative data were disclosed in the remarks.