US-China AI rivalry continues to intensify

President Donald Trump spoke by phone with Chinese President Xi Jinping on Monday, November 24. Trump later described the relationship as strong in a social media post. The call followed a recent meeting in Korea and plans for additional talks in the coming year.

Behind the diplomatic exchanges, competition over artificial intelligence continues to deepen. The technology is viewed by both governments as strategically critical.

On November 20, the U.S. Department of Justice announced criminal charges tied to AI-related hardware. Two Americans and two Chinese nationals were accused of conspiring to export about 400 high-performance graphics processing units to China without required licenses.

Federal law mandates licenses for exporting advanced chips that can be used to develop artificial intelligence. Prosecutors said the defendants did not apply for licenses and misrepresented the destination of the equipment. Authorities alleged they received $3.89 million in wire transfers from China.

The case unfolded as China continues pursuing its goal of becoming the world’s leading AI power by 2030. Research groups report that China leads globally in AI research publications and remains close to the United States in generative AI development.

Chinese advances have been supported by significant government-linked investment. A recent academic study found that venture capital funds connected to the Chinese government invested $184 billion in China-based AI companies between 2000 and 2023.

One day after the indictment, Huawei announced a software tool called Flex:ai. The company said the tool improves the efficiency of AI chip usage. Reports cited by the announcement claimed the software could support the development of analogue AI chips far faster than products made by Nvidia.

Huawei has previously faced U.S. legal action. In 2020, the Justice Department charged the company and several subsidiaries with offenses largely related to trade secret theft and obstruction.

U.S. officials have framed AI as a national security concern. In June, the administration approved a merger between Hewlett-Packard Enterprise and Juniper Networks, citing the need to strengthen domestic competition.

State visits between Trump and Xi are planned for next year. While cooperation is expected to feature prominently, artificial intelligence remains a central point of strategic rivalry.