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Rest of World's publisher visits China and finds the U.S.-China AI rivalry isn't as binary as it seems—both countries are pursuing different but equally serious paths, with China betting heavily on embedding AI into physical products and manufacturing rather than chasing raw computational power.
- China is pivoting toward deploying AI in robotics, EVs, and factories instead of competing for frontier model capability, partly due to U.S. chip export controls but also as a deliberate strategic choice.
- American export restrictions may be obsolete; China's real constraint is now high-quality data and interaction with the physical world, not compute power—meaning Washington's leverage is weaker than assumed.
- Both countries face genuine risks and trade-offs: the U.S. debates innovation versus regulation while China treats advanced AI as a national security asset, embedding it across the economy with minimal constraints on state surveillance or individual liberty.