February 20, 2026

China threatens US AI monopoly with rapid tech advancements

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China’s rapid advancements in AI technology are threatening the U.S.’s dominance in the field, with experts suggesting that this technological shift is just beginning. Rory Green, TS Lombard’s chief China economist, highlighted that China has progressed significantly by developing advanced AI models on domestic technology, supported by initiatives such as a $8.69 billion national AI fund and the “AI+” program. As a result, China’s low-cost tech offerings, including AI and other technologies from companies like Huawei, may become more attractive to developing economies that are significant trade partners with China. Meanwhile, U.S. tech giants are increasing their AI investments, reflecting a competitive response but also facing questions about the long-term returns on these expenditures.

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