US efforts to secure AI supply chains are doomed to fail, says Chinese academic

Chinese academic Zheng Yongnian asserts that the United States' attempts to secure AI supply chains are destined for failure. He argues that the U.S.'s efforts to restrict access to low-cost Chinese AI models would backfire and cause harm to American enterprises. Zheng proposes that the U.S. and China should work together to foster global economic development and generate the external demand necessary for sustained growth.

He highlights that American tech firms prefer expensive, closed-source AI models suited for affluent economies, while China's open-source models offer near-peer performance at a lower cost, making them accessible to developing nations. Zheng also points out that over 40% of current U.S. economic expansion is tied to artificial intelligence, and a burst of Washington's AI bubble could trigger a catastrophic downfall for itself and all its economic partners.

Despite political efforts to create rifts, Zheng argues that complete economic decoupling between the U.S. and China is unfeasible due to their high levels of complementarity. He emphasizes that the U.S. excels in basic scientific research, capital markets, software development, and energy production, whereas China specializes in translating fundamental scientific research into applied technology, software, agricultural goods, and energy.

To achieve genuine global economic rebalancing, Zheng urges both nations to set aside their differences and focus on boosting economic growth in developing regions like Africa, Asia, and Latin America, thereby increasing consumer demand. He advocates for cooperation between the U.S. and China to raise world consumption levels, which would help sustain and grow their respective economies.