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U.S. has been sparing no effort to curb the AI development of China, including AI diffusion rules issued by President Biden to “regulate the global diffusion” of AI chips and models, which has been described to create a centrally planned global computing economy.
But to be sure, it is not a silver bullet. It seems like the U.S. government’s effort to curtail AI development in China through tightened controls of chip exports backfires. The limits forced China to do more with less. The emergence of China's Deepseek shocks the entire AI world, President Trump also called Deepseek a “wake-up call" for U.S. industries that they need to be laser-focused on competing to win.
In any technology war, questions about what countermove the U.S. should make next inevitably run up against the awareness that any notion of controlling innovation through measures like restricting exports is not guaranteed to work – and may even backfire. Among the risks : spurring the development of a global AI ecosystem anchored outside the U.S.; pushing more nations into building stronger technology ties with China; and allowing non-U.S. makers of advanced chips to grow global market share at the expense of the U.S. companies behind the original innovations.
In another words, a focus on stopping the competition can’t keep pace with innovation.
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