Regulation

US and China Spar Over AI and Tech Controls Ahead of Xi’s Washington Visit

Tensions between the United States and China have risen over access to advanced AI chips, allegations of data extraction from Anthropic models, and potential reciprocal technology restrictions.

US and China Spar Over AI and Tech Controls Ahead of Xi’s Washington Visit

Tensions between China and the United States have intensified over the regulation of artificial intelligence and related technologies, occurring just weeks before a planned visit to Washington by Chinese leader Xi Jinping.

US probe into chip access and alleged data extraction

According to reporting by The Information, US authorities are investigating how Chinese AI firms are obtaining access to cutting-edge chips that are nominally restricted under American export controls. The probe follows allegations that a Chinese company extracted data from AI models developed by Anthropic.

US officials have warned that responses could include sanctions and placing companies on blacklists as measures to limit technology transfer and access.

Beijing's potential countermeasures

The Financial Times reports that Beijing is considering its own set of technology restrictions. Possible measures under consideration include tighter controls on foreign acquisitions of Chinese companies and other steps aimed at curbing technology flows to Western rivals.

Diplomatic context and acknowledgements

These developments are unfolding amid diplomatic preparations for Xi Jinping’s visit. After meetings in the region, the United States Secretary of State acknowledged following talks in Manila yesterday that "great differences" between the two powers are likely to persist for the foreseeable future.

Why this matters

The dispute—over access to advanced AI chips, allegations of data extraction from AI models, and reciprocal restrictions—could directly affect global AI development, supply chains, and cross-border investment. Potential US sanctions and blacklisting, along with any Chinese countermeasures, would shape the technological competition and trade relationship between the two countries.

The situation remains fluid; ongoing investigations, possible policy moves and diplomatic engagements will determine how technology and AI ties between the US and China evolve in the near term.