US China AI competition dominated discussions during a Senate subcommittee hearing on Wednesday. White House official Michael Kratsios suggested exporting full AI tech stacks to allies while restricting China. He argued this would maintain US global leadership and secure dominance in artificial intelligence. Experts warned that such measures could undermine innovation and fracture the global AI ecosystem.
Kratsios highlighted that in 2020, the United States led the world in AI, but by 2024, competitors had narrowed the gap. He emphasized that US chips, models, algorithms, and applications remain world-class, and government action should promote these technologies globally. The proposed strategy would ensure that when China gains chip export capabilities, the US would already dominate international markets.
Chinese experts criticized the plan, describing it as shortsighted and counterproductive. Zhang Xiaorong of the Cutting-Edge Technology Research Institute said Kratsios’ approach overlooks long-term consequences. He noted that AI development thrives on collaboration, data sharing, and open participation. Restricting China could accelerate self-reliance rather than curbing progress.
According to analysts, a tech stack includes semiconductor chips, algorithms, software, and applications. Kratsios’ plan, outlined in the US AI Action Plan, seeks to deliver these stacks to allies while limiting China’s access. The strategy also aims to influence international AI governance and establish US standards. However, experts questioned its effectiveness, highlighting potential security risks for allies using US technology.
China’s AI sector continues to expand rapidly. By May, the country housed over 4,500 AI-related companies, with the core AI industry valued near 600 billion yuan. In 2024, Chinese organizations filed more than 61 percent of global AI patents. Breakthroughs in chip architecture, algorithms, and open-source AI models have strengthened China’s independent AI ecosystem. Analysts argue this growth makes containment strategies impractical.
Additionally, open-source AI models like OpenAI’s GPT-oss aim to maintain competitiveness globally. Experts warn that attempts to dominate AI through exclusion could fragment the industry, slow innovation, and hinder economic growth. They recommend collaboration and competition as catalysts for global AI advancement.
China has urged global cooperation in AI development. Spokespeople emphasized inclusive, open, and shared innovation rather than confrontation. Many believe that US China AI collaboration would promote technological progress, economic stability, and shared prosperity worldwide.
