China is gaining ground in AI. But the U.S. still has a major advantage

There's been growing adoption of Chinese AI models among Western companies as capability has shot up. "If Chinese AI technology becomes the default for developing countries, those countries may be more likely to align themselves politically with Beijing and Chinese AI companies get a beachhead in their markets," Remler said. Long term, if "manufacturing, robotics, automated scientific infrastructure and AI-enabled state operations become the defining metric for extracting value from AI, China is well positioned," he added. U.S. export controls have severely limited Chinese AI firms' access to the most advanced chips. "If the United States can sustain these strengths, it will retain its AI advantage, serious geopolitical leverage, and ability to shape global AI rules," said Remler.