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AI technology race is new 'cold war' between US and China that could have devastating consequences: report

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  Published in Science and Technology on Monday, November 10th 2025 at 6:55 GMT by Fox News
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The AI Technology Race: A New Cold War with Devastating Implications

A new report has drawn stark parallels between the current U.S.–China competition over artificial intelligence (AI) and the geopolitical tensions of the Cold War era, warning that the stakes could be far higher than the reader might imagine. The analysis—released by a consortium of U.S. think tanks and government agencies—argues that a rapid AI arms race threatens to destabilize international security, economic stability, and even the very fabric of democratic governance.

The Report’s Core Findings

At the heart of the report is the assertion that the United States is at risk of falling behind China in the development of foundational AI technologies. While the U.S. has historically led in AI research, the Chinese government’s aggressive investment strategy, underpinned by its 14th Five‑Year Plan (2021‑2025), has accelerated progress in key areas such as machine learning models, data collection, and industrial integration.

The report’s authors point to three critical dimensions where the U.S. could lose the lead:

1. Talent and Research Infrastructure – China’s state‑sponsored scholarship programs and the creation of “AI hubs” across the country have drawn both domestic and international talent to its shores. In contrast, the U.S. has faced tightening immigration policies and a shrinking pipeline of AI researchers due to brain‑drain and funding cuts.

2. Data Ecosystems – China’s legal framework permits state access to vast amounts of personal data, creating an environment where AI models can be trained on unprecedented scales. U.S. privacy regulations, such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR), limit the volume and variety of data available for AI training.

3. Industrial Integration and Deployment – Chinese firms such as Huawei, SenseTime, and iFlytek have successfully integrated AI into consumer electronics, telecommunications, and surveillance systems. Meanwhile, U.S. companies face stricter export controls and a fragmented supply chain that hampers rapid deployment.

The report concludes that without a decisive policy response, the U.S. could become a mere observer in a new technological Cold War that would shape global norms for decades.

Policy Recommendations

To counter this emerging threat, the report proposes a four‑point strategy:

• Invest Heavily in Basic AI Research – The authors urge a $10 billion annual allocation for fundamental AI research, mirroring the U.S. Department of Energy’s investment in the National Energy Research Scientific Computing Center (NERSC). This funding would support open‑source AI tools, encourage collaboration across academia and industry, and prevent a “winner‑take‑all” scenario.

• Strengthen Talent Pipelines – Recommendations include expanding STEM scholarships, easing visa restrictions for foreign researchers, and creating AI centers of excellence in partnership with universities. The report also calls for partnerships with international institutions to attract top global talent.

• Build a Resilient Data Infrastructure – The authors suggest creating a national “AI data lake” that aggregates anonymized, high‑quality data from federal agencies and private partners. Data governance frameworks would need to balance privacy with research needs, drawing lessons from the European Union’s GDPR and the U.S. Privacy Act of 1974.

• Promote International Cooperation – The report stresses the importance of establishing a global AI governance framework, perhaps under the auspices of the United Nations or the World Economic Forum. This framework would set standards for AI ethics, safety, and transparency, reducing the risk of a destructive “arms race” mentality.

The authors also emphasize that these measures must be accompanied by a robust national security posture, including cyber‑defense capabilities and the establishment of an AI‑focused “Defence Innovation Unit” modeled after the U.S. Army’s Advanced Research Projects Agency (ARPA‑A).

Broader Implications for the U.S. and China

The report argues that the AI technology race is not merely about economic advantage; it carries profound implications for international power dynamics. China’s growing AI dominance could give it the means to design autonomous weapons, conduct pervasive surveillance, and influence global supply chains—capabilities that the U.S. currently lacks. This would shift the balance of power in ways that could undermine U.S. alliances and open new fronts for geopolitical rivalry.

Conversely, a U.S. failure to secure a leadership position could have cascading effects on the global economy. Many U.S. businesses rely on advanced AI for automation, predictive analytics, and decision support. A slowdown in AI innovation would translate into lost productivity gains, higher costs, and reduced competitiveness on a global scale.

Reactions and Commentary

The report has already elicited strong responses from policymakers and industry leaders. Secretary of Defense Lloyd Austin, in a briefing at the U.S. Department of Defense, acknowledged the need for a “comprehensive strategy” to keep the United States at the cutting edge of AI. Meanwhile, tech CEOs such as Elon Musk and Tim Cook have called for bipartisan support for AI research and emphasized the necessity of a “responsible” AI future.

Internationally, the Chinese Ministry of Industry and Information Technology released a statement supporting the idea that “technological progress should serve global development and peace,” but noted that the U.S. must “respect its sovereignty” and “maintain a level playing field.” The statement underscored China’s commitment to open‑source AI research and collaborative international projects.

Conclusion

The AI technology race between the United States and China is shaping up to be a defining element of the 21st‑century geopolitical landscape. The report underscores that this is not a race of gadgets or corporate branding; it is a contest over who will set the rules for the future of human society. With the U.S. potentially trailing China in critical AI domains, the stakes have moved beyond economic competitiveness and into the realm of national security and global governance. Addressing this challenge will require a coordinated effort spanning federal funding, talent development, data strategy, and international diplomacy—efforts that must be undertaken urgently if the United States is to avoid becoming a bystander in a new Cold War.