US efforts to secure AI supply chains are doomed to fail, says Chinese academic
The latest US AI and supply chain initiatives are doomed to fail, according to a prominent political scientist who also argued that efforts to restrict US companies’ access to low-cost Chinese models would backfire. Instead, he argued, the United States and China should collaborate on driving global economic development to generate the external demand needed to sustain long-term growth. “US…
Prominent Chinese academic Zheng Yongnian contends that the US's recent efforts to secure its AI supply chains are destined to fail. He argues that US initiatives like Pax Silica, the chip alliance, and the rare earth alliance, which aim to limit China's influence, are inherently flawed. Zheng asserts that these frameworks target third parties, leading to inevitable failure.
He suggests that the US and China should instead collaborate to drive global economic development, generating the external demand necessary for long-term growth. Washington's attempts to restrict access to low-cost Chinese AI models, according to Zheng, would backfire and self-harm US businesses, running counter to their development interests.
The academic emphasizes that the US's AI-driven growth model carries systemic risks, with over 40% of current US economic expansion tied to artificial intelligence. He warns that a burst of Washington's AI bubble could trigger a cascading disaster for the US, its economic partners, and the global economy. Zheng also points out that despite political efforts to create rifts, complete economic decoupling between the two powers is unfeasible, as they are highly complementary.
He notes that the US excels in basic scientific research, capital markets, software development, agriculture, and energy production, while China shines in translating fundamental research into applied technology, software, agricultural goods, and energy. To achieve genuine global economic rebalancing, Zheng urges both countries to look beyond their frictions and focus on boosting economic growth in developing regions of Africa, Asia, and Latin America, thereby increasing consumer demand.
He advocates for cooperation over competition, urging China and the US to work together to raise world consumption levels and sustain their economies.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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