US Considers AI Strategy Shift Against China's Solidarity Call

China’s Global AI Solidarity Pitch

Shanghai hosted China’s annual World Artificial Intelligence Conference this weekend. Under the theme “Global Solidarity in the AI Era,” Premier Li Qiang proposed a new global AI cooperation body, likely headquartered in Shanghai. China’s foreign ministry backed the pitch with an action plan focused on open-source communities and joint research—an invitation for worldwide collaboration on AI development.

US Split Over AI Strategy

The United States, however, remains divided. The Trump administration doubled down on an isolationist trade policy, tightening export controls on advanced Nvidia chips to slow China’s AI momentum. But when US bans collided with a robust Chinese black market, Washington quietly relaxed rules to allow older H20 chips—underscoring two contrasting schools of thought on America’s AI strategy.

• Export control camp: Curtail Chinese access to cutting-edge chips to preserve US AI edge and protect national security.
• Cooperation camp: Engage in joint research and open-source projects to set global AI norms and benefit from shared innovation.

Lessons from Export Controls

But export bans haven’t gone as planned. Financial Times data shows about $1 billion in Nvidia’s banned B200 chips were smuggled into China in three months. After Washington approved legal exports of older H20 chips, smuggled demand dropped—suggesting Chinese firms prefer lawful access with full support rather than high-end chips on the black market.

Stakes and Upcoming Trade Talks

At stake is more than market share. US policymakers fear Chinese self-sufficiency in AI hardware could erode America’s economic edge and introduce new security threats. Huawei’s in-house AI computing systems are already rivalling top US products. As envoys meet in Stockholm to negotiate tariff terms before the August 12 deadline, their decisions will shape the next phase of the AI dominance struggle.

In this shifting landscape, tech companies and governments must navigate evolving export rules, geopolitical rivalries, and cooperative opportunities to maintain innovation while safeguarding security.