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China and US spar over AI ahead of Xi visit

Jul 23, 2026, 7:32am EDT
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Chinese President Xi Jinping and U.S. President Donald Trump attend a meeting in May.
Evan Vucci/Pool/Reuters

Tensions between China and the US surrounding AI and technology development intensified just weeks before a planned visit by Chinese leader Xi Jinping to Washington.

According to The Information, the US is investigating Chinese AI firms’ access to cutting-edge chips — ostensibly restricted by American export controls — after accusing a Chinese company of distilling data from Anthropic’s AI models and warning that responses could include sanctions and the blacklisting of companies.

Beijing, meanwhile, is mulling imposing its own tech restrictions, the Financial Times reported, alongside curbs on acquisitions of Chinese firms by Western rivals. After meeting with his Chinese counterpart in Manila yesterday, the US secretary of state acknowledged that “great differences” between the superpowers would remain “for the foreseeable future.”

A chart showing the compute power of several US and Chinese chips.
AD