“The PRC is executing a state-directed campaign to dominate global artificial intelligence,” the report states, pointing to AI as a linchpin for China’s broader ambitions in tech leadership and military modernization.

The report called the “Made in China 2025” plan, which increased the country’s share of industries like drones and electric vehicles, “far-reaching and harmful”. Such grievances help explain why President Donald Trump hit China with punishing tariffs in April.

Mindsets impede AI disruption, Nvidia earnings shatter records and expectations, why China might not want to win the AI race.

Tucked into its quarterly filing, Nvidia for the first time said restrictions on the use of open-source AI models from China could hurt its business.

Despite Wall Street’s general approval of Nvidia’s results and outlook without China, Huang isn’t giving up on the region. The CEO issued a dire warning during the company’s earnings call, saying that whatever chip AI platform wins in China is positioned to lead globally.

China on Thursday announced a plan to establish an artificial intelligence (AI) application cooperation center together with member states of the Shanghai Cooperation Organization (SCO) and pledged to ramp up cooperation in providing open-source services among them in order to deepen technology integration.

Friction between Beijing and Washington is growing as the Trump administration cracks down on visas for Chinese students and access to advanced computer chips.

China's biggest technology companies have begun the process of switching to homegrown chips as they contend with a dwindling stockpile of Nvidia processors and tightening United States export controls,