The United States and China are engaged in a competitive race to advance artificial intelligence (AI) technologies. US President Donald Trump has openly stated his ambitions regarding AI, identifying China as the primary competitor. In contrast, Chinese President Xi Jinping has not made similar explicit statements, but analysts suggest he shares a comparable perspective. Rebecca Arcesati from the Mercator Institute for China Studies noted that China views AI as a critical area for leadership and power enhancement.
AI has been integral to China's technological goals for over a decade, regardless of Xi's public emphasis. Trump has prioritized achieving AI superiority over concerns regarding the technology's risks, which he has previously labeled as a "hoax." In response, China's foreign ministry has cautioned that narratives of threat and confrontation impede global governance of AI, advocating for cooperation to ensure its benefits are widespread.
As the two leaders prepare to meet, AI development is expected to be a key topic of discussion, with implications for global dynamics. Both nations are recognized as leaders in AI, though assessments of who is ahead vary based on the metrics used. American firms excel in frontier AI models, with companies like Anthropic, Google, and OpenAI producing top-performing systems. Research from Stanford University indicated that a model from China's DeepSeek briefly matched the performance of leading US models in early 2025, while Anthropic's model led by a margin of 2.7% as of March 2026.
The US advantage is partly attributed to significant investments in AI companies, which are necessary for developing the infrastructure to train advanced models. OpenAI's CEO, Sam Altman, has called for a coordinated slowdown in advanced AI development. The US stock market has seen substantial growth, with AI companies contributing significantly to the economy.
China faces challenges due to US government restrictions on the sale of advanced microchips to Chinese firms, which are essential for developing cutting-edge AI models. Despite these limitations, both countries continue to release new AI models frequently, raising questions about what it means to "win" the AI race and whether a definitive endpoint exists.
While many companies aim to create artificial general intelligence (AGI), China's AI industry has focused on producing open weight models that are freely available and modifiable, contrasting with the proprietary models favored by many US firms. Chinese models, such as Moonshot AI's Kimi K3, have gained popularity for their performance and accessibility.
China's strategy emphasizes deploying AI technology across its economy, according to Lizzi Lee from the Asia Society Policy Institute. She remarked that while the US may lead in frontier AI, China could gain significant economic and geopolitical advantages by making capable AI widely available.
China also has an advantage in energy costs, which are crucial for AI development. Rebecca Arcesati highlighted that Chinese companies can access electricity at lower costs, benefiting their AI initiatives. In robotics, China has become the largest manufacturer, with over two million robots in operation, according to the International Federation of Robotics. The country also dominates the humanoid robot market, accounting for over 90% of global shipments in the first half of the year, as reported by Chatham House.
Despite the chip restrictions, Chinese AI developers have demonstrated resilience and innovation, according to Lian Jye Su from Omdia. However, US officials have accused Chinese developers of closing the gap through techniques like distillation, which allows them to learn from more advanced models. In response, China's foreign ministry stated that its AI development is driven by a vision of collaboration for mutual benefit.
The approaches to AI safety concerns differ significantly between the two countries. While some US industry leaders warn of existential risks posed by AI, Chinese researchers express more concern about misuse and cyber warfare. Trump has claimed that the US has sufficient regulations in place, asserting that the only necessary safeguard is a "high IQ" president. He emphasized that the US is leading in AI and intends to maintain that position, viewing AI as pivotal to national success.
Washington has focused on fostering innovation and reducing regulations to keep its AI labs at the forefront, as stated by cybersecurity expert Jayant Dave. Conversely, Xi has urged a cautious and coordinated approach to AI risks, implementing guidelines on data usage and algorithms ahead of many other nations. These guidelines, while not legally binding, set expectations and allow for innovation, according to Jonathan Sim, an AI ethics lecturer at the National University of Singapore.
Despite calls for international cooperation, the strategies of the US and China regarding AI's potential dangers remain unclear. Previous collaborations on existential threats like nuclear weapons were based on a mutual understanding that is currently lacking in the AI domain. Dave noted that while Washington is concerned about capabilities escaping control, Beijing is focused on the potential threats to domestic stability.
Trump has dismissed proposals for an industry-wide slowdown, arguing that it could enable Chinese developers to close the competitive gap. Ahead of the upcoming summit, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed establishing a notification mechanism for serious AI incidents. Although Trump's recent rhetoric towards China has been more confrontational, the inclusion of AI on the agenda is viewed as a positive step by policy analyst Leia Wang from the Carnegie Endowment for International Peace. She cautioned against perpetuating a narrative of unhealthy competition that could escalate tensions in the AI sector.