Chinese AI companies have offered models and application programming interfaces at prices far below those of leading U.S. providers. Over time, compatibility, accumulated expertise, ecosystems, and switching costs can make Chinese AI increasingly difficult to replace. From the perspective of China Inc., Chinese AI firms therefore do not have to be immediately profitable. America still holds major advantages in advanced semiconductors, frontier AI models, research, entrepreneurship, and concentrations of world-class talent. This essay is adapted from his forthcoming book, The Low Human Rights Advantage and the Challenge of China Inc.