China is winning one AI race, the US another - but either might pull ahead

April 7, 2026

The United States and China are engaged in an intense technological competition centered on artificial intelligence, with each nation holding distinct advantages in different areas. The US has traditionally dominated AI "brains" through companies like OpenAI and Nvidia, controlling advanced microchips and large language models like ChatGPT, while China excels at AI "bodies" including robotics and humanoid machines, accounting for 90% of humanoid robot exports. However, China's release of DeepSeek in January 2025—a cost-effective chatbot developed despite US chip export restrictions—demonstrated that America's technological lead is narrowing.

Who is affected

American tech companies (OpenAI, Nvidia, Anthropic, Google, Perplexity, Boston Dynamics)
Chinese tech companies and AI developers (DeepSeek and various robotics start-ups)
Taiwan Semiconductor Manufacturing Corporation
ASML (Netherlands-based ultraviolet printing machine manufacturer)
US and Chinese government officials and policymakers
Approximately 900 million ChatGPT users globally (almost one in eight people on the planet)
China's aging population (expected to have people aged 60+ exceed the entire US population by 2035)
Ukraine (deploying AI-powered battlefield drones)
Workers in white-collar professions whose functions may be assumed by LLMs
Investors and shareholders (Nvidia suffered a $600 billion single-day market value loss)

What action is being taken

Washington is enforcing strict export controls preventing China from accessing powerful microchips
America is using its "foreign direct product rule" to force foreign companies to align with US rules
Chinese developers are creating AI models using fewer computer chips due to export restrictions
Chinese firms are publishing their codes online using an "open source" approach
The Chinese government is funding research and providing billions in subsidies to robot manufacturers
Boston Dynamics is using its Spot robot to carry out warehouse inspections with AI analysis
Ukraine is deploying Gogol-M aerial drones with AI-powered targeting capabilities

Why it matters

This AI competition could determine which nation emerges as the dominant global power in the 21st century. The technology has profound implications for economic competitiveness, as AI integration across economies will reshape industries from white-collar professions to manufacturing and care work. The race also presents fundamentally different visions for AI governance—the US approach favors unrestricted consumer capitalism driven by private tech firms, while China's model involves state oversight and control. Beyond economics, AI's military applications, such as autonomous battlefield drones capable of selecting and attacking targets without human control, raise critical questions about warfare and global security. The winner will likely set global standards for AI development and use, affecting billions of people worldwide.

What's next

No explicit next steps stated in the article

Read full article from source: BBC