Chapter 4: The Global AI Power Race: Competition Between the US and China

Artificial Intelligence (AI) has emerged as a core technology of the Fourth Industrial Revolution and a crucial factor determining economic growth and national competitiveness. The United States and China, as global leaders in the AI field, are engaged in fierce technical competition. This has expanded beyond simple technical rivalry into a struggle for hegemony that significantly impacts the global economy and international affairs.

[Figure 19] Following the semiconductor war, the US and China are now engaged in a war for AI hegemony. AI has emerged as a core technology of the technological revolution and a crucial factor determining economic growth and national competitiveness. The US and China, as global leaders in the AI field, are engaged in fierce technical competition.

1. AI Strategies of the AI Powerhouses: The US and China

1-1. The US: Superiority in Basic Research and Core Technologies

The AI industry in the United States leads the world in many respects. The US possesses the longest history of research. Silicon Valley churns out new technologies so rapidly that it is difficult for others to keep up. It exists within a constant whirlpool of innovation, supported by venture capital funding. It also boasts an incredible talent pool, with the world's most outstanding minds engaged in the AI sector within the US. The strengths of the US can be summarized as follows.

First, the US holds an unrivaled position in basic research and the development of core technologies in the field of AI. The technical prowess accumulated through decades of continuous research investment and innovation forms the foundation of the current US AI industry.

The US is investing heavily in AI, occurring across various levels including corporations, government, and academia. In May 2023, the US National Science Foundation (NSF) provided support to establish seven new AI research hubs. The US government supports AI research and development and is promoting policies for the ethical use and regulation of AI technology.

Second, the US AI industry is supported by powerful private capital. The technological innovation ecosystem centered on Silicon Valley serves as a driving force that accelerates the development and commercialization of new AI technologies. Global Big Tech companies such as Google, Microsoft, Amazon, and Meta are leading technological innovation by actively investing in AI research and development. Investment through venture capital provides the soil for innovative AI startups to grow. Such private-led investment contributes significantly to increasing the speed of technological development and promoting the development of market-oriented, practical AI solutions.

Third, the US possesses a world-class AI talent pool. According to 2022 statistics, 38% of the world's top 20% of AI researchers are affiliated with US institutions. This demonstrates that the excellent educational system, research environment, and high compensation in the US attract brilliant talent from around the world. The US has world-class universities and research institutions, through which it cultivates outstanding AI talent. It stands out in fields such as natural language processing, computer vision, and machine learning.

Fourth, the US is also ahead in the industrial application of AI technology. AI systems for precision agriculture are being introduced in the agricultural sector, smart factories in manufacturing, and AI solutions for demand forecasting and logistics optimization in the retail sector, among other various industries. Through this, the US is leading productivity improvements across industries and the creation of innovative business models.

1-2. China: Strategic Cultivation Led by the Government

China's AI industry is growing rapidly based on unique characteristics and strengths, which can be explained as follows.

First, China's AI industry is developing thanks to powerful government-led strategic cultivation policies. The Chinese government has designated AI as a core national strategic industry and is providing systematic policy support along with large-scale financial investment. The full support of the Chinese government is a key driver in accelerating the development and industrialization of AI technology. The government's long-term and consistent strategy is contributing significantly to the creation of an AI industrial ecosystem.

Second, China possesses a vast human-based data pool and an extensive application market based on its massive population of over 1.4 billion people. A gold mine of data, including facial images, financial transaction history from Alipay and WeChat Pay, and transportation routes of countless individuals, exists in China. Since China operates under an authoritarian system and the Party prioritizes AI as its top policy goal, this data can be used without any restrictions. Large-scale data is an essential element for training AI algorithms and improving performance, and the massive domestic market serves as an ideal test bed for the commercialization and verification of AI technology. The high penetration rate of digital services such as mobile payments and e-commerce enables the acquisition of abundant real-world usage data.

Third, China is leading the world in AI-related patent applications. According to statistics from 2013 to November 2022, 53% of the world's AI invention patents were filed in China. This is an indicator showing China's AI technological innovation capability and its active attitude toward protecting intellectual property rights. Patent applications in the field of applied technology are prominent, suggesting that China is focusing on the practical application of AI technology.

Fourth, China is showing unrivaled achievements in industrial cooperation and the development of applied AI technology. It has secured world-class competitiveness in applied technology fields such as image recognition and voice recognition. These strengths contribute to increasing the utility of AI technology in real life and accelerating the digital transformation across industries.

China is growing rapidly in the field of AI based on active government support and massive investment. Chinese IT companies such as Baidu, Alibaba, Tencent, and Huawei are actively participating in AI technology development and have secured world-class technological prowess in facial recognition, voice recognition, and natural language processing. China supports the research and development of AI algorithm libraries and toolsets, accelerates the development of services such as new machine learning, natural language understanding, human-machine interaction, and intelligent control and decision-making, and promotes the construction of open AI platforms.

The Chinese government is strengthening policy support for nurturing the AI industry through initiatives such as the 'New Generation Artificial Intelligence Development Plan.' As of 2024, the Chinese AI industry, valued at approximately 150 billion yuan, is projected to grow to three times that size by 2025.

2. US Attacks on China and China's Defense

The US fundamentally views China as a threat to the global order, based on its undemocratic political system. It believes that China's growing global influence has a negative impact on the development of global civilization. To suppress China's military expansion, the US is strengthening export controls on high-performance computer chips, semiconductor manufacturing equipment, and artificial intelligence to hinder China's supercomputer development and AI technology advancement. This is a measure to check China's military buildup and its rise in high-tech fields, and it includes the following.

2-1. Ban on the Sale of High-Performance Computer Chips

Since 2022, the US has restricted the export of cutting-edge AI chips to China. The Biden administration initially did not intend to include CPUs (Central Processing Units) in the restriction list, but as chip designers integrated special elements for AI computations into CPUs, they were also included in the export controls. On October 7, 2022, the US implemented new export controls targeting China's access to and ability to develop advanced computing and semiconductor manufacturing items.

This reflects the US's determination to respond to the advancement of China's high-tech capabilities in these areas to address foreign policy and national security concerns. The US banned the sale of advanced AI chips from AMD and Nvidia to China and imposed export restrictions on several countries to prevent such technology from reaching China indirectly.

Semiconductor products and other software services produced in China will also be excluded from US government procurement. Under Section 5949 of the National Defense Authorization Act (NDAA), the US government plans to implement regulations starting in 2027 that exclude semiconductor products and services manufactured by specific Chinese companies from government procurement. This measure aims to protect US national security and the supply chain, focusing particularly on semiconductor products and services associated with "foreign countries of concern" like China.

2-2. Ban on the Sale of Semiconductor Manufacturing Equipment

The US has worked to restrict China's access to the semiconductor manufacturing equipment (SME) needed to develop advanced semiconductors. In 2022, the US announced a series of export controls to limit China's access to advanced semiconductors and related technologies. Advanced semiconductors are the key to unlocking new high-tech areas like artificial intelligence.

In October 2022, the US implemented new export control measures restricting the export of advanced semiconductors to China and banning the export of SME for manufacturing chips under 14 nanometers. ASML, based in the Netherlands, is the only company capable of making the most advanced semiconductor SME, and it updated its export controls on SME in March 2023.

On December 2, 2024, the Bureau of Industry and Security (BIS) of the US Department of Commerce announced new regulations restricting the export of advanced semiconductor manufacturing equipment and software tools to China. These regulations take effect on December 31, 2024, and are named the "Export Administration Regulations (EAR) Final Rule."

The regulations ban the export of 24 types of equipment and 3 software tools required for advanced semiconductor manufacturing. Furthermore, it expanded the "Foreign Direct Product Rule (FDP Rule)" to restrict exports to China even if products containing US technology are produced in third countries. This is part of a strategy to block China's high-tech self-reliance and protect the national security of the US and its allies. Secretary of Commerce Gina Raimondo evaluated this as the "culmination of a targeted approach." In particular, it focused on preventing the spread of technology that could be used for China's military modernization and AI development. This measure contains the intention to hinder China's production capacity in advanced semiconductor technology. The US is strengthening these export controls in cooperation with its allies. This is an extension of similar measures announced in 2022 and 2023. Ultimately, the US aims to maintain its technological lead and suppress China's military and economic competitiveness.

US Secretary of Commerce Gina Raimondo stated in a press release, "This measure is the culmination of the Biden-Harris administration's targeted approach and is intended to hinder China's ability to localize the production of advanced technologies that pose a risk to our national security, in cooperation with our allies and partners."

Cutting off the supply of semiconductor chips to China is like cutting off an oxygen supply. However, the US is not stopping there and is also restricting the supply of equipment needed to manufacture chips to China. This is a two-pronged attack. The goal is to force China to surrender.

2-3. Ban on the Export of High-Tech Technologies such as AI

The US government has gradually strengthened technology export controls against China to maintain national security and technological superiority.

On January 3, 2020, the US Department of Commerce announced export restrictions on AI-based geospatial image analysis software. This software can be utilized as technology for automatically identifying military and civilian targets through drones, satellites, and sensors. Export to all countries except Canada now requires license approval.

On October 7, 2022, the US announced regulations restricting the export of advanced semiconductor manufacturing equipment and AI chips to China. This measure was aimed at blocking China's potential for military use and maintaining US superiority in AI and semiconductor technology. In particular, technology required for supercomputer development and maintenance was also included in the export restrictions.

On October 17, 2023, the US further strengthened existing semiconductor export regulations. This made it even more difficult for China to access high-performance semiconductor chips and related technologies. These actions are evaluated as a series of measures to delay China's high-tech development and protect US national security.

On December 2, 2024, the US announced additional semiconductor and software export restrictions. This measure included 24 types of semiconductor manufacturing equipment and 3 types of semiconductor development software. This was implemented with the aim of blocking China's supercomputer and AI technology development.

On January 13, 2025, the US announced access restrictions for AI chips and cloud services. This measure was intended to prevent China from indirectly accessing technology through third countries. Access to technology related to AI models was also included in the restriction list. These export controls were implemented for reasons of US national security.

US technology export restrictions against China encompass various high-tech fields including AI, semiconductors, and cloud services. Since 2020, these measures have been gradually strengthened, focusing on checking China's technological development. AI-based software and semiconductor technology became primary targets for regulation due to their high potential for military use. In the 2022 measures, high-performance AI chips from Nvidia and AMD were also included in the export restrictions.

Since 2023, the US has continuously expanded the scope of export controls in cooperation with its allies. Allies such as the Netherlands and Japan have joined the US export control policy. In 2024, regulations on semiconductor manufacturing equipment and software were further specified. China attempted various methods to bypass the regulations, but the US supplemented the rules to block them.

The 2025 measures expanded the regulatory scope to cloud services and AI model access restrictions. The US is continuously strengthening regulations to delay China's advanced technology development. These actions are evaluated as a strategic response to maintain US technological superiority and protect national security. Export controls focus on blocking China's potential for military use. US export restriction measures are effective in blocking China's access to core technology fields such as AI, semiconductors, and cloud services. It is highly likely that the US will continue to strengthen export controls to maintain its technological edge in the future.

2-4. Future Outlook for US-China Technological Competition

Based on the logic of security and alliances, the US forces its allies to participate in export controls against China. The US persuades its allies through negotiations to join its export control policies or implies that a refusal could affect diplomatic relations. Utilizing the fact that allied companies depend on US technology, the US suggests it could restrict access to the US market if these companies do not follow its export control policies. By applying export controls to products containing US technology, the US forces allied companies to comply with its regulations.

The US-China technological competition is projected to be prolonged, and it is expected to significantly impact global technological innovation and industrial structures. The US will employ various policy tools such as export controls, investment restrictions, and competition for technical standards to slow China's technological progress and maintain leadership. China is also expected to counter US pressure through its own technological development, talent cultivation, and international cooperation, focusing on strengthening its technological competitiveness. The US and China are competing not only over who will lead AI innovation but also over whose values will lead AI worldwide.

Since 2017, the technological war between the US and China has shaken the global electronic product landscape. Amidst sanctions, export controls, and the pursuit of technological leadership, this competition is reshaping supply chains and causing great uncertainty. Despite intense rivalry that could fragment the industry by 2035, the interdependence between these two superpowers remains strong. The technological war between the US and China has intensified significantly since 2017 through broad measures such as tariffs, export controls, and market access restrictions. This war to dominate future technologies like semiconductors and AI has already cost China dearly in terms of export losses to the US, reshaping trade flows as the US diversifies imports from countries like Mexico, Taiwan, and Vietnam. Pressure from the Chinese Communist Party on Taiwan, where TSMC is located, complicates global supply chains. TSMC controls more than half of the global semiconductor market and affects the worldwide supply of advanced chips.

The US-China technological competition is expected to have various effects on international affairs, including the reorganization of global technology supply chains, changes in the international trade order, and the deepening of geopolitical instability. Possibilities such as the strengthening of technological alliances, the intensification of technological blocking, and the formation of a New Cold War structure have been raised, which could amplify uncertainty in the international community and deepen conflicts between nations.

2-5. China's Response Strategy

China is counterattacking strongly against US pressure. It is doing so on several fronts. First, it is putting all its effort into domestic chip production. By pouring an enormous national budget into research and development, it is trying to create Chinese versions of these high-performance chips. This is a movement for technological independence. China wants self-sufficiency and does not want to depend on the US or anyone else.

Since 2014, China has designated semiconductors as a national strategic industry, and in the "14th Five-Year Plan," it defined semiconductors as a core area for national security and development. It has set a specific goal of achieving a 70% self-sufficiency rate in semiconductors by 2025 and is working toward it. China is accelerating the nurturing of its semiconductor industry through large-scale investment and support. It is providing funds by creating the National Integrated Circuit Industry Investment Fund and actively supporting the listing of semiconductor companies on the STAR Market. Furthermore, it is promoting industrial development by providing various tax benefits to semiconductor and software companies.

Great effort is also being put into talent cultivation. By strengthening industry-academic links, China is nurturing practical talent and establishing a systematic educational system for training professionals in the field of AI.

It is also putting all its effort into recruiting talent. By bringing people over, they are naturally taking Silicon Valley's secrets. It is not stealing, but it is an enticement. By providing everything, including huge salaries, leadership roles, titles, and research funds, China is trying to recruit the best AI researchers, including Chinese nationals working abroad and foreign experts.

Furthermore, China is focusing on domestic education. It is investing heavily in AI education starting from elementary school. The goal is to cultivate a generation of AI genius children. China is thinking decades ahead and playing a long-term game.

China is also taking countermeasures against US sanctions. It has banned the export of core minerals such as gallium, germanium, and antimony to the US and is actively encouraging its domestic companies to use Chinese-made semiconductors.

China's technological progress is also being made steadily. In 2022, the localization rate of semiconductor equipment rose to 35%, and significant progress is being seen in core process fields such as etching, thin films, and deposition. In the AI field, China is approaching world-class levels in basic theories and application programs, and it aims to expand the size of its core AI industry to 400 billion yuan and related industries to 5 trillion yuan by 2025. The technological hegemony competition between the US and China is expected to intensify further. China will accelerate efforts for technological self-reliance, while the US is projected to strengthen its technology blockade against China through cooperation with allies. This is expected to have a broad impact on the entire global technological industry ecosystem.

2-6. China's AI Development: DeepSeek AI

China's AI development is securing a comparative advantage on the international stage through technological innovation capabilities based on vast data resources, strategic government support, rapid execution, and cost efficiency.

China can effectively utilize vast amounts of data resources. This has become possible due to a population of 1.6 billion and the expansion of digital infrastructure, contributing significantly to improving AI performance through the collection and analysis of diverse data.

The Chinese government's strong support and policy investment also play a crucial role. Through government-led long-term strategies, concentrated support is provided for the infrastructure and funding necessary for AI research and development, acting as a driving force for accelerating technological innovation.

Chinese companies respond agilely to market changes and show rapid execution. The ability to introduce and commercialize new technologies within a relatively short period is a strength that differentiates them from competitors. This is a benefit created by a disciplined governance system.

Many Chinese companies are realizing innovation by quickly sharing and applying the latest research results through open-source projects and global collaboration. Based on economies of scale, they have firmly established hardware and software ecosystems required for AI technology development. These points act as key factors that allow China to maintain international competitiveness and even take a leading position in the field of artificial intelligence.

DeepSeek, created in China and distributed worldwide via open-source methods, is surprising the global AI industry. According to their own claims, DeepSeek developed the DeepSeek-V3 model in just two months with a minimal budget, engaging in direct competition with giants like Meta, OpenAI, and Anthropic. In various tests, the V3 model demonstrated top performance with fewer resources, showing a "David vs. Goliath" scenario. It is noteworthy that they maximized performance through efficient coding and innovative algorithms. Despite having to use NVIDIA H800 chips instead of the top-spec H100 chips due to US advanced chip export restrictions, DeepSeek recorded excellent benchmark results, and is currently evaluated as a case that turned these constraints into an opportunity for innovation. While ordinary AI models predict only the next single word, DeepSeek predicts multiple words simultaneously. This is said to allow for a better grasp of context, making results more accurate. DeepSeek uses a Multi-Head Latent Attention method, which employs multiple "attentions" simultaneously. Attention is a method for finding important parts in a sentence. Using it multiple times in this way allows the computer to process information efficiently, resulting in high efficiency with less memory usage.

DeepSeek also contains a structure called Mixture of Experts (MoE). This involves dividing a large model into several expert models and then selecting only the expert that can answer the specific question. Since not all experts have to work at the same time, it can theoretically reduce memory usage. However, it is said that this effect may be somewhat limited in actual services.

DeepSeek optimized CUDA technology, which utilizes GPUs, at a low level to make the calculation process fast and efficient. Doing this reportedly speeds up training and improves overall performance.

In terms of performance, DeepSeek is said to show quite good skills even in difficult areas like math problems. Although it is competitive compared to the latest models like GPT-4, some evaluations suggest that models like Alibaba's Qwen-2.5-Max or R1 perform better. Still, DeepSeek is considered to be at a sufficiently usable level on its own. To summarize, DeepSeek can be described as a model that improved performance through various features (simultaneous multi-word prediction, multi-head attention, mixture of experts, optimization, and distillation).

Another strength of DeepSeek is that it was released as open source. The fact that anyone can view and modify the code presents a completely different direction from OpenAI, which has taken a closed approach. The open-source approach enables the democratization of AI technology, making it easy for individuals, small businesses, and researchers to access cutting-edge AI tools. Consequently, it provides an environment where innovative ideas can be quickly implemented without being constrained by cost and resources.

Attention is being paid to the knowledge distillation technique adopted by DeepSeek. This is a method where the more sophisticated R1 model trains the less complex V3 model, acting as a kind of "AI tutor," which is said to be an innovative approach that significantly reduces development time and cost.

Some have raised suspicions that DeepSeek used knowledge distillation techniques to unauthorizedly collect data or training materials from competing companies for use in its own model development. However, there is currently no concrete evidence or official confirmation for these claims. DeepSeek has denied these suspicions, and opinions among industry experts are divided, with no conclusion yet reached.

DeepSeek's service is being criticized for excessive personal information collection. Concerns grew after it became known that it collects not only data such as IP addresses, device information, and cookies, but also key input patterns. Furthermore, storing this information on servers in China has raised issues regarding data sovereignty and user identification.

European countries are reviewing DeepSeek in depth from a national security perspective, and Italy has reportedly sent an official inquiry. Germany is also considering regulatory measures. In South Korea, the Personal Information Protection Commission and the Korea Communications Commission have sent inquiries to DeepSeek or are monitoring the situation for potential damage.

There is a possibility that sensitive information could be provided to the Chinese government without authorization under Article 7 of China's National Intelligence Law. The original text of the law states, "All organizations and citizens shall support, assist and cooperate with national intelligence work in accordance with the law, and keep secrets of national intelligence work known to them." There are even reports that China uses AI-based facial recognition to track and monitor ethnic minorities, especially those in the Xinjiang region. There are also stories about the development of a social credit system that scores people based on their behavior using AI.

In addition, the Chinese government promulgated internal regulations in June 2024, such as "Opinions of the Ministry of Commerce and 9 Other Departments on Expanding Cross-border E-commerce Exports and Promoting the Construction of Overseas Warehouses." Looking at Article 12, it encourages Chinese companies to freely cooperate and circulate data among themselves when they collect it. Therefore, it must be assumed that if one Chinese company collects consumer data, it will be shared with all other companies within China. The Chinese government is encouraging this. "(12) Improve cross-border data management and service levels. Under the premise of complying with laws and regulations and ensuring security, promote and standardize cross-border data flows, and allow orderly and free data flows in application scenarios such as cross-border e-commerce and cross-border payments. Encourage cross-border e-commerce and overseas warehouse companies to use data to empower the upstream and downstream of the industrial chain in accordance with laws and regulations, and enhance the flexible supply capabilities of production companies."

If behavioral information such as the user's key input patterns mentioned above is accumulated, it may become easy to identify individual users. Due to this problem, several countries are showing movements to restrict DeepSeek's services. DeepSeek claims to have established a personal information protection policy, but controversy over its scope and methods continues.

As a result, governments and institutions in each country are investigating how DeepSeek manages the collected personal information, and some countries are partially or fully restricting the use of the app. The world is concerned about the possibility that the Chinese Communist Party's one-party authoritarian political system might misuse the personal information collection process.

The success of DeepSeek goes beyond simple technological achievement and has the potential to reshape the landscape of the global AI industry. Especially amidst geopolitical constraints such as US advanced chip export restrictions, the emergence of a China-led open-source AI model signals a new shift in global technological hegemony. It has even been compared to an "AI Sputnik moment," predicting a ripple effect similar to the space race era. The case of DeepSeek also hints that "efficient algorithms and innovative ideas" are more important in AI development than the "astronomical sums of money spent on GPU facilities."

DeepSeek is exerting strong competitive pressure on existing AI service companies, which is likely to lead to cost reductions and improvements in service quality. As DeepSeek has proven its competitiveness by achieving high performance with fewer resources, other companies will have no choice but to adopt cost-effective models and accelerate technological innovation.

The price of AI services will gradually become cheaper, and customers will have more opportunities to experience improved services. At a time when the cost of using AI was about to surge with OpenAI launching the GPT-Plus option for $20 a month, the emergence of DeepSeek is a welcome competitive development for consumers. The activation of competition will promote the popularization of cheap and universal AI technology and stimulate innovation among companies in a rapidly changing market.

3. AI Policies of the Two Nations

3-1. US Government: Trump's Executive Order

(1) The Biden Administration's Executive Order for "Safe, Secure, and Trustworthy Development and Use of AI"

On October 30, 2023, President Biden issued Executive Order 14110 on the "Safe, Secure, and Trustworthy Development and Use of AI." This executive order was intended to respond to the rapid development of generative AI since 2020, particularly the release of large language models like ChatGPT. The goals of the executive order were to promote competition in the AI industry, prevent threats to civil liberties and national security caused by AI, and secure US global competitiveness in the AI field. This document outlined the primary directions for how the US government would develop and utilize AI "safely, responsibly, and for the benefit of all." It can be summarized as follows.

Awareness of AI's Potential and Risks: AI has boundless potential to make the world more convenient and prosperous. At the same time, if used carelessly, it can increase bias or discrimination and cause various problems such as the wide spread of misinformation. Therefore, the government, corporations, academia, and civil society must all cooperate to control risks effectively and maximize the benefits of AI.

Coordination and Role of the Government: The Biden administration considers the proper management and development of AI at the federal government level as its most important task. As AI develops rapidly, it is necessary for the government to step forward and respond along with various domestic and international stakeholders.

Core Values and Principles

- Safety and Security: AI systems must be thoroughly tested before use, and their performance and security status must continue to be verified during use. Rules and evaluation systems are needed to prevent AI from being misused or tampered with. In addition, ways to provide "labeling" or "provenance information" so that people can identify whether content was created by AI should be researched.

- Responsible Innovation and Competition: Support must be provided to ensure the AI field develops fairly and vigorously in areas such as updated intellectual property (IP) issues, development environments, and education and training. Competition must be well-managed so that crucial resources like semiconductors or the cloud are not concentrated only in specific companies, allowing small-scale developers and entrepreneurs to attempt innovation freely.

- Worker Protection and Opportunity Creation: All workers must be able to equitably enjoy the new jobs or industrial benefits that AI will create. An environment that expands vocational education or retraining and respects workers' rights must be fostered. At the same time, regulations and guidelines are needed to prevent AI from bringing excessive surveillance or a decline in job quality.

- Equity and Protection of Civil Rights: AI must be carefully managed to prevent it from further increasing discrimination or bias. It should be checked whether AI actually helps ensure people's safety, equality, and opportunity, and AI systems that cause discrimination must be strictly regulated.

- Consumer Protection: Significant damage can occur if AI malfunctions in important fields such as health, finance, education, and housing. Therefore, consumers must be protected from fraud, bias, and privacy infringement through continuous management and supervision of whether AI is being used properly.

- Protection of Privacy and Liberty: AI can analyze and predict people's personal information very sophistically. To prevent the misuse of this capability, the government should take the lead in handling data safely and actively utilize Privacy-Enhancing Technologies (PETs) when necessary.

- Strengthening AI Utilization Capabilities within the Federal Government: The government itself should hire many AI experts and educate its employees so they can well understand the pros and cons of AI. Furthermore, safeguards must be in place to ensure that AI utilized in public services does not infringe upon citizens' rights.

- International Cooperation and Leadership: The US must not only lead AI technology but also create rules and standards for its responsible use together with the rest of the world. It must cooperate with international partners to ensure that AI does not lead to human rights violations or increased unfairness in other countries.

To open a bright future brought by AI, both the government and society must join forces to balance safety, fairness, equity, and innovation. The US aims to lead the world by establishing systems and guidelines to realize these values.

However, this executive order dated October 30, 2023, was invalidated immediately after President Trump's inauguration. This decision was made based on Trump's philosophical background that there should be no limits on the development and advancement of AI, and his judgment that President Biden's executive order was an obstacle to the development and distribution of AI.

(2) President Biden's Executive Order on AI Infrastructure dated January 14, 2025

This is the "Executive Order to Strengthen US Leadership in the Field of AI Infrastructure," issued on January 14, 2025. It aims to develop national security, economic competitiveness, and clean energy technology through the construction of AI infrastructure within the US, providing relevant policy directions and detailed action plans. It explains a comprehensive plan prepared for the US to maintain global leadership in AI infrastructure and simultaneously achieve advancements in national security, economic competitiveness, and clean energy technology.

The plan involves systematically supporting and supervising the process of constructing AI data centers and related facilities, as well as the high-performance computing and energy infrastructure required for them. It is a comprehensive strategy to allow various sectors,from those directly related to national security like military cybersecurity to the energy infrastructure ecosystem for small and medium-sized enterprises,to develop through AI technology.

This executive order presents five main points. First, to manage AI for safe use in the field of military intelligence to simultaneously protect national security and maintain leadership in AI. Second, to foster a fair AI ecosystem where small and medium-sized developers and entrepreneurs can participate competitively, bringing vitality to the overall economy. Third, to operate data centers in an eco-friendly manner through clean energy, pursuing environmental protection and future energy businesses together. Fourth, to meticulously manage large-scale investments and rate structures so that AI infrastructure construction costs are not excessively passed on to consumers and businesses. Fifth, to establish high labor standards and cooperation systems so that workers and local communities benefit during the process of building AI infrastructure, ensuring a win-win for everyone.

In addition, it seeks to identify federal land or clean energy facility sites suitable for AI infrastructure for large-scale construction and save time and costs by processing permit procedures quickly. It aims to ensure a stable power supply to data centers by expanding power transmission infrastructure and establishes safeguards to protect the environment and local communities in the process. Along with this, it includes plans to prioritize the use of core components such as US-made semiconductors and expand AI technology cooperation with allies.

This executive order aims to grow national security, the economy, and the energy industry all using AI technology and create new jobs and industrial opportunities. However, it emphasizes that the participation of various departments, companies, and local communities is necessary during implementation, and the environment and opinions of local residents must be fully respected. Overall, it is a document that shows the government's will to "hasten US safety and prosperity through AI technology."

It presents a comprehensive plan to secure US leadership in the field of AI. It includes various aspects such as AI infrastructure construction, clean energy development, simplification of permit processes, and strengthening the supply chain, and it is expected to contribute to national security and economic competitiveness. However, the participation and cooperation of various stakeholders are essential in the implementation process, and careful consideration of environmental impacts and local community opposition is necessary.

Although issued just a few days before President Biden left office and right before President Trump was inaugurated, President Trump recognized the validity of this executive order even after taking office, as it concerns urgent procedural parts required for building AI infrastructure. Therefore, it is expected to be executed as it is.

(3) President Trump's Executive Order dated January 23, 2025: Removing Barriers to US AI Leadership

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows.

Section 1. Purpose. The United States has long stood at the forefront of artificial intelligence (AI) innovation, powered by the strengths of the free market, world-class research institutions, and entrepreneurial spirit. To maintain this leading position, we must develop AI systems that do not intentionally reflect ideological bias or social agendas. With appropriate government policy, we can solidify our leading position in the global AI field and ensure a brighter future for all Americans. This executive order enables decisive US action to maintain global leadership in the field of AI by revoking certain existing AI policies and directives that act as barriers to AI innovation in the US.

Section 2. Policy. It is the policy of the United States to continuously and robustly strengthen its global superiority in the field of artificial intelligence to promote human prosperity, economic competitiveness, and national security.

Section 3. Definitions. In this order, the terms "artificial intelligence" or "AI" have the meaning specified in 15 U.S.C. 9401(3).

Section 4. Establishment of an AI Action Plan.

a. Within 180 days after the effective date of this order, the Assistant to the President for Science and Technology (APST), the Special Advisor for AI and Crypto, and the Assistant to the President for National Security Affairs (APNSA), in coordination with the Assistant to the President for Economic Policy, the Assistant to the President for Domestic Policy, the Director of the Office of Management and Budget (OMB), and the heads of each executive department and agency (hereinafter "agencies") that the APST and APNSA deem relevant, shall prepare and submit to the President an Action Plan to achieve the policy set forth in Section 2.

Section 5. Implementation of Revocation.

a. The APST, the Special Advisor for AI and Crypto, and the APNSA, in coordination with the heads of all agencies they deem relevant, shall immediately review all policies, directives, regulations, orders, and other actions implemented under Executive Order 14110 of October 30, 2023 ("Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence"). Furthermore, the APST, the Special Advisor for AI and Crypto, and the APNSA, in coordination with the heads of the relevant agencies, shall identify actions implemented under Executive Order 14110 that conflict with or act as obstacles to the policy set forth in Section 2. For such identified actions, the heads of each agency shall, as appropriate and in accordance with applicable law, rescind, modify, or terminate such actions, or propose their rescission, modification, or termination. If such actions cannot be immediately rescinded, modified, or terminated, the APST and the heads of the agencies shall expeditiously take all possible exception measures allowed by applicable law until such actions are finalized.

b. Within 60 days after the effective date of this order, the Director of the Office of Management and Budget (OMB), in coordination with the APST, shall make necessary modifications to OMB Memoranda M-24-10 and M-24-18 to ensure consistency with the policy set forth in Section 2.

Section 6. General Provisions.

a. Nothing in this order shall be construed to impair or otherwise affect:

1. The authority granted by law to an executive department or agency, or the head thereof;

2. The functions of the Director of the Office of Management and Budget (OMB) relating to budgetary, administrative, or legislative proposals.

b. This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

c. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE

January 23, 2025

This executive order reflects President Trump's commitment to deregulating the AI sector and expanding corporate autonomy. Instead of the previous Biden administration's goal of safe AI use, it shows a strategy to strengthen US global AI leadership and promote economic growth and national security. On the other hand, it may raise concerns about potential risks and AI ethics and social impact, likely triggering political debates among various stakeholders. Additionally, since a specific action plan has not yet been presented, future policy directions must be carefully watched as they materialize.

Considering the international AI competitive environment and the rapid pace of technological advancement, flexible policy formulation is important, and this executive order is expected to influence the AI policies of other countries. While it is a significant change aimed at re-establishing US AI leadership and encouraging innovation, continuous attention and discussion regarding AI ethics and social impact are needed.

The Trump administration also claims to have revoked the relatively balanced executive orders and regulations on AI implemented by the Biden administration in order to counter China's AI development and its authoritarian political system.

However, it is also concerning that Xi Jinping and Trump seem so focused on winning the race that they might not pay enough attention to the rules and might make choices based on convenience rather than principle.

Yuval Harari warns in his books and lectures about the serious problems that the concentration of AI and data power will bring, presenting these as significant challenges facing humanity. He emphasizes that AI has the potential to fundamentally change human decision-making and social structures beyond being a simple technical tool.

In particular, he points out that if data is monopolized by a few corporations or governments, it carries the risk of weakening democracy and strengthening dictatorial control. He warns that AI possesses the ability to predict and manipulate human behavior, through which it can destroy public trust and social cohesion. Furthermore, the fictional stories and information generated by AI can incite the public or reinforce biases, potentially deepening social inequality and conflict. He argues that to solve these problems, democratic management of data and ethical control mechanisms for AI are essential. Ultimately, he emphasizes that to protect human identity and freedom in the AI era, a cautious approach to technological development and international cooperation are required.

(4) OpenAI Launches AI for Government Agencies

OpenAI has launched ChatGPT Gov, a new version of ChatGPT specifically created for US government agencies. It provides enhanced security and privacy features and is designed to allow government agencies to handle sensitive data safely while utilizing OpenAI's cutting-edge AI models. OpenAI emphasizes that ChatGPT Gov will accelerate the US government's use of AI and contribute to the national interest, citing cases where several agencies are already using ChatGPT to increase efficiency. Although the US government's official stance on this has not been determined, it is believed they will eventually accept it. Now, starting with the US, an AI government is being born instead of just an e-government. ChatGPT Gov provides functions similar to ChatGPT Enterprise but with further strengthened security features. Key features include secure conversation storage, text and image uploads, access to the GPT-4o model, and the creation and sharing of Custom GPTs. An administrative console for building agency-specific customized systems is also provided. This functions as an infrastructure that supports stable and efficient operation in the public sector beyond being a simple innovation tool.

Since 2024, more than 90,000 users in over 3,500 US federal, state, and local government agencies have used ChatGPT. It is currently being utilized in various fields such as administrative support, research, and operational improvement. The US Air Force Research Laboratory used it for improving access to internal data, basic coding, and AI education; Los Alamos National Laboratory utilized it for research and innovation, including biology research experiments using GPT-4o; and the Minnesota state government was reported to have used it for translation services.

If the US government institutionally approves this and actually introduces it entirely or partially, it will be a landmark change in human history. It has the potential to improve the efficiency of government agency operations and the quality of public services through advanced AI models. However, tasks such as AI ethics and data security issues also remain as matters to be continuously monitored. While increasing efficiency and productivity in the public sector through the introduction of AI technology, continuous efforts will be needed to resolve related concerns and secure public trust.

3-2. AI Policy of the Chinese Communist Party

To show how visionary a perspective China had regarding AI, I will present the "Notice of the State Council on the Issuance of the New Generation Artificial Intelligence Development Plan," officially announced on July 8, 2017. The following is a translation of the original text of that document.

China already announced in 2017 its plan to reach a world-class level in AI technology and applications by 2020, to make AI a major driver of industrial innovation and economic development and build a smart society by 2025, and to lead the world in AI theory, technology, and applications and jump to becoming a global AI innovation hub by 2030.

(a) Strategic Situation Related to Artificial Intelligence

AI development has entered a new stage. After more than 60 years of development, driven by new theories and technologies such as the mobile internet, big data, supercomputing, sensor networks, and brain science, as well as the strong demand for economic and social development, AI is accelerating and showing new features such as deep learning, crossover integration, human-machine collaboration, open swarm intelligence, and autonomous control. Big data-driven knowledge learning, cross-media collaborative processing, human-machine collaborative augmented intelligence, swarm integrated intelligence, and autonomous intelligent systems have become the focus of AI development. Brain-like intelligence inspired by brain science research results is awaiting development, and as the trends of chipification, hardwareization, and platformization become more prominent, AI development has entered a new stage. Currently, as the development of new-generation AI-related disciplines, theoretical modeling, technological innovation, and software and hardware upgrades are being promoted as a whole, they are causing chain breakthroughs and pushing various fields of economy and society to jump from digitalization and networking to intelligentization.

AI has become a new focus of international competition. As a strategic technology that will lead the future, major developed countries in the world consider AI development a major strategy for improving national competitiveness and maintaining national security. They are rushing to announce plans and policies and are strengthening their layout around core technologies, top talent, and standard norms, striving to seize the initiative in a new round of international scientific and technological competition. Currently, as China's national security and the situation of international competition become more complex, we must look at the entire world and systematically arrange and proactively plan AI development at the national strategic level to firmly seize the strategic initiative in the new stage of international AI competition, create new competitive advantages, open up new space for development, and effectively guarantee national security.

AI has become a new engine of economic development. As a core driver of a new round of industrial transformation, AI will further release the huge energy accumulated in past scientific and technological revolutions and industrial transformations and create a powerful new engine. It will reconstruct each stage of economic activities such as production, distribution, exchange, and consumption, form new demands for intelligentization from macro to micro fields, and trigger new technologies, new products, new industries, new business formats, and new models. This will cause major transformations in the economic structure, deeply change human production and life ways and thinking patterns, and realize an overall leap in social productivity. As China's economic development enters a new normal state and the task of deepening supply-side structural reform is very difficult, we must accelerate the in-depth application of AI and nurture and strengthen the AI industry to inject new momentum into China's economic development.

AI brings new opportunities for social construction. China is currently in a decisive stage of building a moderately prosperous society in all respects. While challenges such as population aging and resource and environmental constraints are still serious, AI will be widely applied in fields such as education, medical care, elderly care, environmental protection, urban operation, and judicial services. This will greatly improve the level of precision in public services and comprehensively improve the quality of life for the people. AI technology can accurately perceive, predict, and warn about major situations in infrastructure and social security operations, grasp collective cognitive and psychological changes in a timely manner, and make proactive decisions and responses. It will significantly improve the capability and level of social governance and play an irreplaceable role in effectively maintaining social stability.

The uncertainty of AI development brings new challenges. As a disruptive technology with a wide range of influence, AI may bring problems such as changes in employment structures, shocks to legal and social ethics, infringement of personal privacy, and challenges to international relations norms. It will have a deep impact on government management, economic security, social stability, and even global governance. While vigorously developing AI, we must attach high importance to possible safety risk challenges, strengthen proactive prevention and constraint guidance, minimize risks to the maximum extent, and ensure the safe, reliable, and controllable development of AI.

China's AI development has a good foundation. The nation has arranged major projects in national key research and development plans such as intelligent manufacturing and has announced and implemented the "Internet+" AI Three-Year Action Implementation Plan, proposing a series of measures in terms of scientific and technological research and development, application promotion, and industrial development. Through years of continuous accumulation, China has made important progress in the AI field. The volume of international scientific and technological papers published and the number of invention patents granted already rank second in the world, and important breakthroughs have been achieved in core key technologies in some fields. Voice recognition and visual recognition technologies are leading the world. Adaptive autonomous learning, intuitive perception, comprehensive reasoning, hybrid intelligence, and swarm intelligence have initially acquired the capability for leapfrog development. Chinese language information processing, intelligent monitoring, biometric recognition, industrial robots, service robots, and autonomous driving are gradually entering actual application. AI innovation and entrepreneurship are becoming increasingly active, and some leading hub companies are growing rapidly, receiving wide international attention and recognition. The organic combination of accelerating technological capabilities, vast data resources, huge application demand, and an open market environment has formed a unique advantage for China's AI development.

At the same time, we must soberly see that the overall development level of China's AI still has a gap compared to developed countries. There is a lack of major original achievements, and there are large gaps in terms of basic theories, core algorithms and key equipment, high-end chips, major products and systems, basic materials, components, software, and interfaces. Scientific research institutions and enterprises have not yet formed an ecosystem and industrial chain with international influence, and there is a lack of systematic forward-looking research and development arrangements. The supply of high-end AI talent falls far short of demand. The infrastructure, policies and regulations, and standard systems adapted to AI development urgently need to be perfected.

Facing new situations and new demands, we must proactively seek changes and respond, firmly seize the major historical opportunity of AI development, stay close to development, study and judge the general trend, proactively plan, grasp the direction, seize the initiative, lead the new tide of global AI development, serve economic and social development, support national security, and lead the overall leap and leapfrog development of national competitiveness.

Guiding Ideology

Comprehensively implement the spirit of the 18th National Congress of the Party and the 3rd, 4th, 5th, and 6th Plenary Sessions of the 18th CPC Central Committee. Deeply study and implement the spirit of General Secretary Xi Jinping's series of important speeches and the new concepts, thoughts, and strategies for national governance. According to the "Five-in-One" overall layout and the "Four Comprehensives" strategic layout, earnestly implement the policy decisions and arrangements of the Party Central Committee and the State Council. Deeply implement the innovation-driven development strategy. Take the acceleration of in-depth integration of AI with the economy, society, and national defense as the main line. Take the improvement of new-generation AI scientific and technological innovation capabilities as the main direction of attack. Develop an intelligent economy, build a smart society, and maintain national security. Construct an ecosystem where knowledge clusters, technology clusters, and industrial clusters interact and merge, and talent, systems, and culture support each other. Proactively respond to risks and challenges. Promote intelligentization centered on human sustainable development to comprehensively improve social productivity, comprehensive national power, and national competitiveness. Provide strong support for accelerating the construction of an innovative country and a world scientific and technological power, and for realizing the "Two Centenary" goals and the Chinese Dream of the great rejuvenation of the Chinese nation.

Basic Principles

Scientific and Technological Leadership. Grasp the global AI development trend, highlight the forward-looking nature of research and development arrangements, and make exploratory arrangements and long-term support in key high-end areas. Strive to achieve revolutionary and disruptive breakthroughs in terms of theories, methods, tools, and systems. Comprehensively strengthen AI original innovation capabilities, accelerate the construction of first-mover advantages, and realize high-level leading development.

Systematic Arrangement. Establish a goal-oriented systematic development strategy according to the different characteristics of basic research, technology research and development, industrial development, and industry application. Fully exert the advantage of the socialist system in concentrating power to accomplish great tasks. Promote the integrated arrangement of projects, bases, and talent. Organically link already arranged major projects with new tasks. Connect current urgent demands with long-term development in stages. Coordinately promote innovation capability construction, system and mechanism reform, and policy environment creation.

Market-Driven. Comply with market laws and adhere to application orientation. Highlight the main role of enterprises in technology route selection and industry product standard formulation. Accelerate the commercialization of AI scientific and technological achievements to form competitive advantages. Well grasp the division of labor between the government and the market. Better exert the important role of the government in terms of planning guidance, policy support, safety prevention, market supervision, environment creation, and formulation of ethics and regulations.

Open Source and Opening Up. Advocate the open-source sharing concept and promote the joint creation and sharing of various innovation subjects in industry, university, research, and application. Comply with the coordinated development laws of economic construction and national defense construction. Promote the two-way transformation and application of military and civilian scientific and technological achievements and the joint construction and sharing of military and civilian innovation resources. Form a new pattern of all-element, multi-field, and high-efficiency deep military-civilian integration development. Actively participate in global AI research and development and governance, and optimize the arrangement of innovation resources on a global scale.

Implementation of Strategic Goals by Stage

Step 1: By 2020, the overall AI technology and applications should be synchronized with the world's advanced level. The AI industry should become a new important economic growth point, and AI technology applications should become a new path for improving people's livelihood, strongly supporting the goal of entering the ranks of innovative countries and realizing the construction of a moderately prosperous society in all respects.

, Achieve important progress in new-generation AI theories and technologies. Realize important progress in basic theories and core technologies such as big data intelligence, cross-media intelligence, swarm intelligence, hybrid augmented intelligence, and autonomous intelligent systems. Achieve landmark results in terms of AI model methods, core devices, high-end equipment, and basic software.

, AI industrial competitiveness enters the international first tier. Initially establish AI technology standards, service systems, and industrial ecosystems. Nurture some global leading AI hub companies. The size of the core AI industry should exceed 150 billion yuan, driving the size of related industries to exceed 1 trillion yuan.

, The AI development environment is further optimized. Comprehensively carry out innovation applications in key areas. Gather high-level talent and innovation teams. Initially establish AI ethical norms and policies and regulations in some areas.

Step 2: By 2025, realize major breakthroughs in basic AI theories. Some technologies and applications should reach the world-leading level. AI should become a major driver for China's industrial upgrading and economic transformation, and the construction of a smart society should make active progress.

, Initially establish a new-generation AI theory and technology system. AI with autonomous learning capability should achieve breakthroughs. Achieve leading research results in multiple fields.

, The AI industry enters the high end of the global value chain. New-generation AI should be widely applied in areas such as intelligent manufacturing, intelligent medical care, smart cities, intelligent agriculture, and national defense construction. The size of the core AI industry should exceed 400 billion yuan, driving the size of related industries to exceed 5 trillion yuan.

, Initially establish AI laws and regulations, ethical norms, and policy systems. Form AI safety evaluation and control capabilities.

Step 3: By 2030, AI theories, technologies, and applications should overall reach the world-leading level, making China a major global AI innovation center. The intelligent economy and smart society should achieve clear results, laying an important foundation for entering the forefront of innovative countries and becoming an economic power.

, Form a relatively mature new-generation AI theory and technology system. Achieve major breakthroughs in fields such as brain-like intelligence, autonomous intelligence, hybrid intelligence, and swarm intelligence. Have important influence in the international AI research field and occupy the high ground of AI science and technology.

, AI industrial competitiveness reaches the international leading level. Maximize the breadth and depth of AI applications in all aspects of production and life, social governance, and national defense construction. Form a complete industrial chain and high-end industrial clusters including core technologies, core systems, supporting platforms, and intelligent applications. The size of the core AI industry should exceed 1 trillion yuan, driving the size of related industries to exceed 10 trillion yuan.

, Form some global leading AI scientific and technological innovation and talent cultivation bases. Build a more complete system of AI laws and regulations, ethical norms, and policies.

Overall Layout

AI development is a complex systems engineering task involving the entire country. It should be arranged according to "building one system, grasping dual attributes, adhering to the trinity, and strengthening four supports" to form a strategic path for the healthy and sustainable development of AI.

Construct an open and collaborative AI scientific and technological innovation system. Aiming at key difficult problems such as weak original theoretical foundations and lack of major products and systems, establish a new-generation AI basic theory and core common technology system. Arrange the construction of major scientific and technological innovation bases. Strengthen the high-end AI talent pool. Promote the collaborative interaction of innovation subjects to form a continuous innovation capability for AI.

Grasp the features of high integration of AI technological attributes and social attributes. While increasing AI research and development and application intensity and maximizing AI potential, predict AI challenges and coordinate industrial policies, innovation policies, and social policies. Achieve harmony between promoting development and rational regulation to prevent risks to the maximum extent.

Adhere to the "trinity" promotion of AI research and development attack, product application, and industrial cultivation. Adapt to AI development features and trends. Strengthen the in-depth integration of the innovation chain and industrial chain, and the interaction evolution of technology supply and market demand. Promote area application and industrial upgrading with technological breakthroughs, and promote technology and system optimization with application demonstrations. While promoting technology application and industrial development on a large scale at present, strengthen medium- and long-term research and development arrangements and attacks to realize rolling development and continuous improvement. Ensure leading in theory, occupying the high ground in technology, and safety and controllability in application.

Comprehensively support scientific and technological, economic, and social development and national security. Lead the overall improvement of national innovation capability with AI technology breakthroughs and lead the process of building a world scientific and technological power. Strengthen the intelligent industry and nurture the intelligent economy to create a new growth cycle for China's economic prosperity in the next 10 years and even decades. Promote the improvement of people's livelihood and welfare through the construction of a smart society to realize the development ideology centered on the people. Enhance national defense strength with AI to guarantee and maintain national security.

4. Major Areas of AI Competition

The US-China AI competition is unfolding in various fields, and the competitive landscape for each area is analyzed as follows.

In the AI semiconductor field, the US holds a dominant position with Nvidia, Intel, and AMD leading the way, while China is actively promoting technology development through Huawei and Alibaba. Nvidia's AI chips hold an unrivaled position in the global market.

In autonomous driving technology, Tesla and Google's Waymo in the US hold leading positions, while Baidu's Apollo and Xpeng in China are rapidly catching up. Tesla's Full Self-Driving (FSD) technology and Waymo's robotaxi service are receiving attention in the global market.

In the medical AI field, IBM Watson and Google DeepMind in the US are in the lead, while Tencent and Alibaba in China are developing medical AI solutions and seeking to expand their markets.

In the financial sector, JP Morgan and Goldman Sachs in the US are leading financial services utilizing AI technology, while Ant Financial and Ping An Insurance in China are leading fintech innovation.

In the military sector, DARPA and the Department of Defense in the US are leading AI military technology development, while China is accelerating the development of military AI technology centered on the People's Liberation Army.

This competitive landscape is directly linked to the technological hegemony competition between the two nations, and fierce technology development and competition for market preoccupation are ongoing in each field.

4-1. AI Semiconductors

AI semiconductors are an essential element for implementing AI technology, and both countries are investing heavily in AI semiconductor technology development. The US leads the AI semiconductor market through global semiconductor companies such as Nvidia, Intel, and AMD, while China is accelerating AI semiconductor technology development through companies like Huawei and Alibaba. US semiconductor export regulations against China are a measure to check China's AI semiconductor technology development and are one of the key issues between the US and China. The US has banned the export of high-performance AI semiconductors produced by Nvidia to China, causing difficulties for Chinese companies in securing core components needed for AI technology development.

4-2. Autonomous Driving AI

In the US, leading companies like Waymo (Google) and Tesla are researching technologies close to "full self-driving," but they are facing difficulties in spreading the use of autonomous driving functions to many vehicles on actual roads due to regulation and infrastructure issues. On the other hand, Chinese companies like Baidu and Pony.ai are quickly proceeding with commercialization by operating robotaxis in several major cities. As the Chinese government actively supports autonomous driving technology, infrastructure is also being quickly improved. China is focusing on using 5G technology to increase the safety and efficiency of autonomous driving technology.

The US is leading in technological innovation and research, while China has a large market size and strong government support, leading to a faster speed of operating autonomous vehicles on actual roads. Both countries expect the economic effects that autonomous vehicles will create, but for the US, securing safety regulations and consumer trust is a challenge, while for China, meeting international standards and building trust in overseas markets remain important issues.

Waymo autonomous taxis can be hailed through an app and are available in cities like San Francisco. Passenger initials are displayed on the top of the vehicle for easy identification, and defensive driving is prioritized in complex road environments. While deviations from lanes during left turns or hesitation at intersections without traffic lights are observed, the vehicle naturally slows down during sudden cut-ins. In the event of an accident, it stops immediately and connects to a remote support team, but processing time can take up to 40 minutes. The interior of the modified Jaguar electric SUVs is highly clean, although some soiled props are occasionally found, and at approximately $16 for a 1.7-mile (about 2.7 km) trip, it is slightly cheaper than Uber.

Baidu Apollo boasts extreme price competitiveness at 2.3 yuan (about 437 won) for a 14 km trip, and enables smooth driving without sudden stops by linking with smart traffic lights. Prices are expected to rise as the number of users increases in the future. It set a record of up to 95 km in unmanned driving in downtown Wuhan, but performance partially degrades during night driving. The 6th generation model "Apollo RT6" increased space utilization by removing the driver's seat entirely, and users can check the AI's object recognition process in real-time on the in-car screen. It operates in 11 cities including Beijing and Shanghai, and foreigners can only book using local accounts. Users' evaluations include "more skilled than a novice driver" and "anxiety during sudden lane changes" simultaneously.

Users in both countries point out that responses to the sudden appearance of pedestrians or bicycles are insufficient, and they cited the need for a switch to manual driving due to sensor performance degradation during bad weather as a common challenge. Meanwhile, demands for service improvements that find a balance between cheap fares and technical reliability have also been raised.

As of 2025, the US still maintains its superiority in the technical field, but it is evaluated to be slightly behind China in commercialization, while China leads in autonomous vehicle distribution and actual usage environments based on large-scale investment.

4-3. Medical AI

AI technology can be utilized for disease diagnosis, treatment, and prevention in the medical field, and both the US and China are focusing on medical AI technology development. The US leads in medical AI technology through IBM Watson and Google DeepMind, while China is engaging in medical AI technology development through Tencent and Alibaba. China is expected to grow rapidly in the medical AI field due to high accessibility to medical data and strong government support.

The introduction of medical AI in the US is steadily increasing. A significant number of US hospitals have introduced it, with some showing a high level of AI adoption. Through AI-based diagnostic tools, efficiency is being increased in various fields such as skin cancer screening, image analysis, and patient record management. Surgical robots are also assisting doctors to increase the accuracy and efficiency of surgeries, although they have not yet reached the stage of performing surgeries fully autonomously. It is also being utilized for workflow optimization, automation of daily tasks, and patient demand forecasting.

Medical experts acknowledge that AI helps assist doctors' work, but they evaluate that AI is not yet at a level to replace doctors independently. They emphasize a cautious approach. Dr. Michelle Thompson of the University of Pittsburgh School of Medicine evaluated that AI increases doctors' focus on patients, and Dr. Frank Liao of UW Health mentioned efforts to resolve the increasing workload of medical staff through generative AI tools.

China is also growing rapidly in the medical AI field. It is expected to grow even more significantly within the next few years. It is a very high annual average growth rate. The Chinese government aims to become a world-leading country in the AI field, and medical AI is an important part of this plan. Chinese medical experts report that they are improving patient treatment results through AI.

China is introducing medical AI at a faster rate than the US. Although both countries support medical AI at the government level, more active policies and investments are being made in China's case. AI is being utilized in various fields such as diagnosis, workflow optimization, and patient monitoring.

In conclusion, while China is introducing medical AI at a faster rate, the US is taking a more cautious and balanced approach. Both countries recognize the potential of medical AI and are focusing on improving the quality of medical services and reducing costs through it.

4-4. Financial AI

In the financial sector, AI plays an important role in various areas such as customer service innovation, risk management, investment optimization, and increasing operational efficiency. AI-based chatbots and virtual assistants handle customer inquiries 24 hours a day and significantly improve the customer experience by recommending personalized financial products. It enables more sophisticated risk assessments by automating loan screening and credit evaluation and contributes to preventing financial fraud by analyzing transaction data to detect abnormal transactions in real-time.

In terms of investment management, AI analyzes market data to optimize investment portfolios and supports fast and accurate transactions through algorithmic trading. Financial institutions can make better investment decisions and suggest strategies that fit customers' financial goals. It simplifies financial processes by automating repetitive and time-consuming tasks, maximizing operational efficiency and bringing cost-reduction effects.

The influence of AI on the financial industry is expected to grow even larger. It can strengthen competitiveness by enhancing data analysis and prediction capabilities, improving risk management and customer service, and increasing operational efficiency.

The US is developing financial AI technology through a private-led innovation ecosystem. Large financial institutions and fintech companies are using AI to optimize various financial services. JP Morgan is processing thousands of documents in seconds by automating loan screening and contract review through its AI-based platform COiN. It is increasing the speed of loan approvals and effectively managing risks. Banks like Wells Fargo have introduced generative AI-based chatbots to provide customized consultation services and quickly resolve customer inquiries. Goldman Sachs is strengthening investment stability by developing financial fraud detection and market risk prediction models using AI. It operates systems that optimize investment portfolios through AI-based algorithms and automatically recommend investment strategies by analyzing market data.

China is quickly commercializing financial AI by utilizing large-scale government-led investment and vast data. It stands out in digital payments and fintech fields. Centered on mobile payment platforms like Alipay and WeChat Pay, China has established itself as a global leader in the fintech industry that merges finance and artificial intelligence (AI). Alipay and WeChat Pay occupy more than 90% of the Chinese mobile payment market, and they provide various financial services such as loans, investments, and insurance beyond simple payments. AI technology is utilized in these platforms to improve the user experience and strengthen risk management and fraud prevention systems. It contributes to providing personalized financial services through big data and machine learning and automating customer credit evaluation and loan approval procedures. Alibaba's Zhima Credit is an AI-based credit scoring system that efficiently manages loan screening and credit scores. Industrial and Commercial Bank of China (ICBC) provides an integrated digital payment and financial consultation service through an AI-based customer consultation system, improving the customer experience. Major Chinese banks use AI to detect financial fraud through large-scale data analysis and to establish systems for predicting risks in advance.

[Figure 20] China is quickly commercializing financial AI by utilizing large-scale government-led investment and vast data.

They are building prediction systems. Ant Group utilizes AI to automate asset management and investment strategies, providing customized financial services to customers.

The US maintains a qualitative edge in financial AI through private-led innovation and high-tech development, while China has achieved rapid commercialization based on strong government-led support and vast data. Both countries contribute to maximizing the efficiency and innovation of financial services, reshaping the competitive landscape of the global financial market.

4-5. Military AI

In the military sector, AI is innovatively changing warfare methods and national defense strategies. AI is utilized in various areas such as information collection, analysis, decision support, autonomous weapon systems, and cybersecurity, establishing itself as a core technology of modern warfare. By processing and predicting vast amounts of data on the battlefield in real-time, it helps military commanders make quick and accurate decisions. It performs roles such as identifying enemy movements and terrain features by simultaneously analyzing satellite images and drone footage, or suggesting effective countermeasures by detecting enemy strategies in advance.

Autonomous weapon systems refer to weapons that can detect, track, and attack targets without human intervention through AI. Drones, unmanned combat vehicles, and autonomous submarines are representative examples, and these weapons are showcasing tactics for attacking or defending targets as a group using swarm intelligence. AI also comprehensively analyzes complex battlefield situations and suggests optimal operational plans to commanders. Called "AI Military Staff," it can suggest strategies that minimize friendly casualties during combat and increase mission success rates.

It is also prominent in the area of cybersecurity. AI technology plays an important role in detecting enemy hacking attempts in real-time and defending against attacks by supplementing network vulnerabilities. Logistics and supply chain management can also maximize efficiency with the help of AI, strengthening combat readiness by quickly supplying necessary resources and reducing logistics costs.

As such, AI utilized in the military field learns based on large amounts of data to maintain high accuracy even in complex environments and is developing to make its own judgments according to battlefield situations with autonomy and adaptability.

Swarm intelligence, in which several unmanned aerial vehicles cooperate, is receiving attention as an important technology used to overwhelm enemy defense systems or effectively defend specific areas. Even if the intelligence of individual drones is somewhat limited, it is evaluated as an element that can bring innovation to military operations in that it can exert powerful force through a collectively cooperating swarm form.

Vice Chairman of the Joint Chiefs of Staff Christopher Grady said, "AI will be a key element on the future battlefield," and emphasized that the US must continue to secure a competitive advantage based on this technology. Former Google CEO Eric Schmidt warned in the US Congress in 2020 that "China has the potential to overtake the US in fields such as artificial intelligence (AI), quantum technology, and high-speed computing," and argued that the US needs more investment to maintain technological hegemony.

Chinese President Xi Jinping mentioned that AI is a key technology for strengthening China's military and economic capabilities and clearly presented the goal of reaching the top position in the global AI field by 2030. A spokesperson for the Chinese Ministry of Defense mentioned regarding the 2024 China-Cambodia military exercise that "AI-based unmanned systems will play an important role in urban combat," suggesting the actual deployment of AI weapon systems.

China aims to secure a military advantage through rapid and practical technology development. As AI emerges as the central axis of military competition, tension between the two countries is rising. While the US seeks to lead international norms surrounding AI technology from an ethical perspective, China prioritizes its own interests and seeks to utilize it actively, so conflict is likely to deepen in the process of setting global AI standards. AI technology can be used for weapon development, strategy formulation, and operational efficiency improvement in the military field, and both the US and China are competitively investing in military AI technology development. The US leads in military AI technology centered on DARPA and the Department of Defense.

China is accelerating the development of military AI technology centered on the Chinese People's Liberation Army. The US-China military AI competition can significantly impact changes in the balance of military power and international security. The military use of AI technology can lead to unexpected consequences, and international norms and cooperation are required.

5. US-China AI Hegemony Competition

5-1. The US Manhattan Project

While the State Council of China announced the "New Generation Artificial Intelligence Development Plan" and presented the goal of becoming a global leader in the AI field by 2030, in contrast, in November 2024, the US-China Economic and Security Review Commission (USCC) proposed an initiative mimicking the "Manhattan Project" for the development of Artificial General Intelligence (AGI). This reflects a strategic approach to secure superiority in technical competition with China. The nuclear weapon Manhattan Project and the AI Manhattan Project have different historical backgrounds and specific goals, but they share a very large similarity in that they are large-scale, state-led technological innovations.

The core goals of the AI Manhattan Project proposed by the USCC are as follows.

- Accelerate the Development of Artificial General Intelligence (AGI): Secure technological superiority through the development of AI systems with intelligence at or above the human level.

- Strengthen National Security Capabilities: Modernize military power and improve information analysis capabilities using AI technology.

- Enhance Economic Competitiveness: Strengthen industrial competitiveness and create jobs through AI technology innovation.

The following detailed strategies were presented. For the development of the AI industry, it is important to strengthen public-private partnerships. A close technical cooperation system between government research institutions and private companies must be established, and regulations must be relaxed to promote voluntary research and development by private companies. A funding mechanism must be prepared to effectively support joint research projects.

President Trump argued that the Biden administration's mandatory AI safety assessments hinder innovation. He declared that he would abolish such regulations and make the US the leading AI nation. He stated that he would put more energy into AI development to win the technical competition with China. President Trump emphasized his commitment to securing US AI technological superiority through the "AI Manhattan Project." On January 21, 2025, he announced the "Stargate" project at the White House. This project is a large-scale AI infrastructure construction plan to invest $500 billion (about 710 trillion won) in cooperation with OpenAI, SoftBank, and Oracle.

The President compared this to the "AI Manhattan Project" and explained it as a strategic approach for US technological superiority. "Stargate" would be the foundation for the development of next-generation AI. Furthermore, he stated that the project aims to strengthen the national security of the US and its allies. He expressed his determination to suppress China's technological hegemony expansion and rebuild a "Great America." He expressed confidence that "Stargate" would accelerate US AI technology development. He claimed that this project would create more than 100,000 jobs in the US. "Stargate" plans to build a large-scale data center starting in Texas.

During the 2024 presidential campaign, President Trump expressed his commitment to drastically relaxing regulations for AI development. He emphasized stable energy sources to meet the power demand required for AI technology development. In particular, he mentioned plans to utilize traditional energy sources such as nuclear power. President Trump said, "I will mobilize emergency powers to supply the power needed for established and operating AI factories." He emphasized that if regulations become a stumbling block to AI technology development and strengthening national competitiveness, he would abolish them all.

President Trump emphasized that AI technology would strengthen US national security and economic interests. He mentioned that AI technology would be the core future competitiveness. The Trump administration established a strategy to check China's technical challenges through AI development. The "AI Manhattan Project" has established itself as a core initiative to strengthen US global technological competitiveness. In conclusion, President Trump made clear his commitment to securing US economic and military superiority through AI technology.

5-2. Intense Competition for Talent Recruitment

In competition, talent recruitment occupies an important part. In the case of the US, it leads core technology development based on abundant capital and excellent manpower while serving as a hub for global AI research. China has also set the goal of leaping to become an AI power through the "New Generation AI Development Plan," and is promoting a powerful state-led AI strategy and is also eager to recruit talent.

The US government's H-1B visa is a program that allows companies to hire high-skilled foreign workers and plays an important role especially in advanced technology fields such as artificial intelligence (AI), semiconductors, and software development. However, this visa has also received criticism for threatening the jobs of American workers.

President Trump implemented policies restricting the issuance of H-1B visas in his previous first administration (2017-2021), which was one of his core campaign promises emphasizing "America First." However, after taking office in 2025, Trump made a U-turn from his previous policy by showing a position in support of expanding H-1B visas, accepting the opinions of technology industry leaders such as Elon Musk.

Musk emphasized that programs like the H-1B visa are essential for the US economy and technology industry. He argued that "the US must attract the world's best talent" and that a shortage of talent, especially in the fields of engineering and AI, limits the growth of technology centers like Silicon Valley. Musk mentioned that he himself was an immigrant who started his career in the US through an H-1B visa in the past and emphasized that legal immigration should be distinguished from illegal immigration rather than simply using immigration regulations.

As research exchange with the US weakens, China is experiencing a shortage of high-end talent, and to solve this, it is promoting a strategy to nurture AI talent and actively recruit talent from other countries. As explained earlier, it is putting all its effort into recruiting talent. By bringing people over, they are naturally taking Silicon Valley's secrets. By providing everything, including huge salaries, titles, and research funds, China is trying to recruit the best AI researchers, including Chinese nationals working abroad and foreign experts.

In the field of artificial intelligence, securing core personnel is a crucial factor that determines competitiveness. Both the US and China are engaged in fierce competition to attract the best talent, which occurs in various ways such as increasing wages, improving research environments, and issuing visas. The competition for talent recruitment is a major part of the US-China AI competition, and the competition between the two countries is expected to intensify further in the future.

5-3. AI Preparedness Obligations for Executive Departments

China's AI Preparedness Obligations

The Chinese government is strengthening legal and ethical reviews to prepare for the social risk factors of AI technology. This is a measure to minimize the impact of AI technology on society and prevent side effects resulting from technological development.

To develop AI technology, China is strengthening the link between enterprises and industries. This includes strategies where the government and corporations cooperate to promote AI innovation and integrate AI technology across industries. This approach is securing the internal driving force for AI technology and contributing to increasing industrial competitiveness. The Chinese Ministry of Education is selecting various schools as AI education bases to include AI education in the mandatory curriculum for elementary, middle, and high schools.

To expand the use of AI technology, China is including AI education in the mandatory curriculum for elementary, middle, and high schools. This is a strategy to help students increase their understanding of AI technology from an early age and grow into future AI talent. The Ministry of Education has selected 184 schools as AI education bases and is developing AI-related curricula to allow students to gain practical experience.

To develop AI technology, China is strengthening global AI talent recruitment and international cooperation. This is part of a strategy for China to increase its competitiveness in the AI field and establish itself as a global technological leader. The government operates various programs to attract overseas talent and promotes AI technology innovation through international research cooperation projects.

The US's AI Preparedness Obligations

To ensure the safety of AI technology, the US government mandates safety assessments for AI development companies. As a measure to ensure that AI systems operate safely in real environments, companies must perform safety tests before product launch. This plays an important role in minimizing the impact of AI technology on society and securing the safety of users and consumers.

The US is developing safety standards for AI tools. These standards are designed to ensure that AI systems do not lead to unexpected consequences and require companies to comply with them. The goal is to increase the reliability of AI technology and create an environment where users can utilize the technology with peace of mind.

To promote the development of AI technology, the US mandates AI development companies and cloud service providers to report their foreign customer lists. As a measure to strengthen national security and prevent foreign malicious use of AI technology, companies must regularly report information about foreign customers. This plays an important role in ensuring that US AI technology can be used safely.

The US is continuously proposing AI-related bills to promote the development of AI technology and is encouraging the proper use of AI technology. This includes efforts to promote the ethical use of AI technology and maximize its positive impact on society. The government is promoting various policies in cooperation with companies to ensure that AI technology fulfills its social responsibility.

Differences in Policy Approaches

The Chinese government is implementing strong policies to establish new management norms for integrating AI technology into industries, thereby supporting the industry and regulating necessary areas. This can be seen as a strategic choice for China to position itself as a global leader in the AI field.

During the Biden administration, the United States focused on the safety and responsible use of AI technology. The U.S. has a long history of basic research and core technology development, emphasizing private-sector-led AI industry cultivation. Global U.S. IT companies contribute to leading AI innovation, and this private sector participation serves as a crucial factor in accelerating the development of AI technology. The U.S. approach is evaluated as a balanced strategy that promotes innovation while ensuring the safety of AI technology. Since the inauguration of the Trump administration, the focus has shifted toward emphasizing corporate autonomy and removing national restrictions to advance the AI industry and secure top-tier leadership.

6. Side Effects of Competition

The artificial intelligence competition between the U.S. and China can lead to side effects in various fields.

The Chinese government's excessive global data collection: China regards data as a "national asset" and is adopting a strategy to maximize economic, political, and military interests through it. While strictly controlling the cross-border flow of data through the Data Security Law (2021) and the Personal Information Protection Law (2021), it is also strengthening efforts to collect global data.

It encourages Chinese companies operating abroad to transmit data to servers within China, viewing data as a core element of "digital sovereignty" with the intention of expanding international influence. These data policies have the potential to conflict with global privacy norms (such as GDPR), and concerns are rising because the Chinese government can access data collected by Chinese companies overseas.

China's cross-border e-commerce policy aims to optimize global supply chains and strengthen the competitiveness of Chinese companies using data. Data collection is highly likely to be achieved through cooperation among Chinese companies, and overseas warehouses serve as hubs for collecting and transmitting data to mainland China rather than just simple logistics bases. The Chinese government improves industrial chain efficiency by analyzing consumer behavior data, logistics data, and payment data. While this data utilization contributes to the growth of China's digital economy, it can cause issues regarding global data sovereignty and personal information protection.

In June 2024, China promulgated regulations titled "Opinions of the Ministry of Commerce and 8 Other Departments on Expanding Cross-border E-commerce Exports and Promoting the Construction of Overseas Warehouses." According to Article 12, when Chinese companies collect data, they are encouraged to engage in free cooperative distribution among themselves. Therefore, it should be assumed that if one Chinese company collects consumer data, it is shared with all other companies within China, as the government encourages it.

(12) Improving cross-border data management and service levels. Under the premise of complying with laws and regulations and ensuring safety, promote and standardize the cross-border flow of data, and allow the orderly and free flow of data in application scenarios such as cross-border e-commerce and cross-border payments. Encourage cross-border e-commerce and overseas warehouse companies to use data to empower the upstream and downstream of the industrial chain in accordance with laws and regulations, and strengthen the flexible supply capabilities of production enterprises.

(12) Improving cross-border data management and service levels. Under the premise of complying with laws and regulations and ensuring safety, promote and standardize the cross-border flow of data, and allow the orderly and free flow of data in application scenarios such as cross-border e-commerce and cross-border payments. Encourage cross-border e-commerce and overseas warehouse companies to use data to empower the upstream and downstream of the industrial chain in accordance with laws and regulations, and strengthen the flexible supply capabilities of production enterprises.

Chinese tech companies like DeepSeek are facing international criticism for excessive data collection, gathering sensitive data such as IP addresses, device information, cookies, and keystroke patterns. The collected data is stored on servers in China, and there is a possibility that it is operated in a structure accessible by the Chinese government. The intention to support China's digital economy and technological development by collecting global data and promoting cooperation among Chinese companies is clearly evident in these services.

China's Digital Silk Road strategy aims to strengthen the digital economy through global data collection and utilization, while Europe and the United States are taking measures to strengthen data sovereignty and privacy protection in response.

While data collection and utilization play a vital role in China's digital economy growth and technological advancement, they conflict with global data norms and face international criticism. The Chinese government continues to pursue a strategy to expand its economic and political influence through data, and global data collection and utilization have become core elements for cooperation among Chinese companies and the strengthening of the digital economy. This is deepening the debate surrounding data sovereignty and privacy issues in the international community.

Intensification of global economic instability: The U.S.-China AI competition leads to technological hegemony competition, trade disputes, and investment restrictions, which can increase global economic uncertainty. The U.S.-China competition is also affecting global supply chains, and the reorganization of supply chains for core components such as semiconductors is expected to accelerate. U.S. semiconductor export regulations against China are measures to check the development of China's AI semiconductor technology and are one of the core issues in the U.S.-China AI competition.

Intensification of the arms race: The U.S.-China AI competition can lead to military power competition, security instability, and international conflicts. AI technology can be utilized in the military field, and the U.S.-China military AI competition can accelerate the arms race and threaten international security.

Ethical issues of AI technology: The development of AI technology can cause ethical issues such as job losses, privacy violations, and the deepening of bias and discrimination. The U.S.-China AI competition may worsen these ethical issues by focusing on technology development and securing a competitive advantage rather than seeking solutions to these problems.

Weakening of international cooperation: The U.S.-China AI competition hinders international cooperation and may make it difficult to establish global AI governance by intensifying technology blocking, standard competition, and data competition.

While the U.S.-China AI competition can promote technological progress and economic growth, it can also cause various side effects. To minimize these side effects and maximize the positive use of AI technology, international cooperation, the establishment of norms, social discussion on AI ethics, and the development of balanced policies involving experts from various fields are necessary.

7. Major AI Research Institutions in the U.S. and China

7-1. Major AI Research Institutions and Companies

(1) United States

OpenAI develops large language models (LLMs) like ChatGPT and aims to develop human-level artificial general intelligence (AGI). Securing funding from Microsoft, it deploys AI models through the Azure cloud platform, and generative AI models like GPT-4 are being used in various fields such as natural language processing, translation, coding, and content generation. OpenAI emphasizes the safety and ethical use of AI, expanding the AI ecosystem by collaborating with developers through events like DevDay. It explores various application fields like education, healthcare, and robotics using AI technology, with a future vision of solving complex human problems through AGI and increasing the accessibility of AI technology globally. OpenAI simultaneously pursues commercial success and social contribution, with a long-term goal of creating a "transcendent peer" that can collaborate with humans through the advancement of AI technology.

NVIDIA is leading the AI hardware market by innovatively improving AI model training and data processing speeds through GPU technology. Tensor Core GPUs and the CUDA platform contribute to maximizing the efficiency of deep learning and machine learning models, and NVIDIA technology is used in various industrial fields such as AI research, autonomous driving, robotics, and medical image analysis. NVIDIA is expanding AI infrastructure through large-scale data center solutions like AI Factories and has recently focused on developing technologies to open the era of AI-based robotics and "physical AI." It leads AI technology innovation and ecosystem expansion through global events like GTC and contributes to sustainable technology development such as solving environmental problems and building smart factories using AI technology. It is developing next-generation network and edge computing solutions through the fusion of AI and 5G technology, and CEO Jensen Huang emphasizes that AI technology will become the core engine of all industries, continuously driving AI innovation.

Google develops generative AI models like Bard and Gemini, integrating AI into search engines and cloud services. Google Brain and DeepMind lead AI research by developing innovative AI architectures like the Transformer, achieving results in various application fields such as AI-based search technology (BERT) and medical AI (AlphaFold). Google contributes to solving social issues like flood prediction, environmental protection, and educational support using AI technology, providing various functions such as multilingual support, reasoning, and coding through language models like PaLM 2. Google emphasizes responsible AI development based on AI principles and actively participates in developing future technologies like smart cities, autonomous driving, and robotics using AI technology. Its long-term vision is to innovate human life and create a sustainable future through AI.

Microsoft is integrating AI technology into various business solutions through the Azure platform and Copilot and is commercializing generative AI technology by integrating GPT models into the Azure cloud through cooperation with OpenAI. It provides AI solutions in various industries such as AI-based automation, data analysis, and natural language processing, contributing to solving social issues in education, healthcare, and manufacturing. It plans to invest 80 billion dollars by 2025 to expand data centers and AI infrastructure and is pursuing AI development that complies with regulations like the EU AI Act while emphasizing AI ethics and responsibility. Microsoft aims to promote global industrial development and economic growth through AI technology and is focusing on creating sustainable business models and social value using AI technology in the long term.

IBM provides AI solutions in various industries such as healthcare, finance, and manufacturing through Watson AI, advancing AI-based automation and data analysis technologies. Watson Health utilizes innovative AI technology in the medical field, such as cancer diagnosis, drug development, and patient management. IBM provides various business solutions such as AI-based cybersecurity, supply chain management, and customer service. It also participates in sustainable energy management and environmental protection projects, with a future vision of improving human life and contributing to a sustainable society through AI technology. The Stanford Artificial Intelligence Laboratory (SAIL) was founded in 1962 by John McCarthy, and its current director, Professor Christopher Manning, is a world-renowned authority in natural language processing and deep learning. SAIL performs innovative research in various AI fields such as deep learning, natural language processing, robotics, and computer vision, and significantly contributed to the development of computer vision through the ImageNet project. Professor Fei-Fei Li co-founded the Institute for Human-Centered AI (HAI), emphasizing the ethical use of AI and human-centered design, and plays a crucial role in commercializing AI research results and revitalizing the startup ecosystem through close links with Silicon Valley. Stanford has supported the founding of more than 69,000 companies worldwide through AI research, with a future vision of improving human life and creating a sustainable society through AI technology.

MIT plays a leading role in AI research and education, and the MIT-IBM Watson AI Lab, established in 2017, conducts research on AI hardware, software, and deep learning algorithms through cooperation with IBM. This laboratory focuses on applying AI technology in various industrial fields such as healthcare, cybersecurity, and finance, contributing to the development of core AI technologies like reinforcement learning, natural language processing, and computer vision. MIT leads the development of next-generation AI technology through fusion research of quantum computing and AI and cultivates next-generation AI experts through AI education programs. MIT's long-term goal is to innovate human life and lead positive changes worldwide through AI technology.

UC Berkeley's Artificial Intelligence Research (BAIR) Lab was established in the 1960s and performs leading research in various AI fields such as computer vision, reinforcement learning, and robotics. It has innovatively advanced big data and AI research through the development of open-source software like Apache Spark and Ray and is developing technology to optimize AI workloads in multi-cloud environments through the Sky Computing Lab. BAIR emphasizes AI ethics and human-centered design, promoting the commercialization of AI technology and revitalizing the startup ecosystem through collaboration with industry.

Carnegie Mellon University is established as a global leader in AI and robotics research, leading AI education and research by founding the world's first Machine Learning Department. It has proven the practical application possibilities of AI through projects like CoBots and Libratus and is leading the development of AI technology with outstanding performance in international competitions such as the DARPA Robotics Challenge. CMU solves social problems in various industrial fields like healthcare, education, and transportation using AI technology and cultivates next-generation AI experts through AI research and education.

(2) China

China is positioned as a leader in the development and application of artificial intelligence (AI) technology, with major national institutions playing a crucial role in supporting it. This section describes AI-related organizations under the Chinese Academy of Sciences (CAS), the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the China Institute of Information and Communications Technology (CIID).

Chinese Academy of Sciences (CAS)

CAS is China's top academic institution, leading basic theory and applied research in AI. It has the Institute of Automation and the Institute of Computing Technology under its umbrella, and these institutions perform world-class research in various AI fields such as deep learning, computer vision, and natural language processing. CAS ranks first in the world in contribution to scientific and technological papers and exerts high influence in AI-related research as well. It plays a leading role in solving scientific problems and developing new algorithms using AI. According to the Chinese government's AI development strategy, CAS focuses its research on enabling AI technology to contribute to national economic and social development.

Ministry of Industry and Information Technology (MIIT)

MIIT is responsible for policies and standardization for the development of the AI industry in China and actively supports the industrialization and commercialization of AI technology. It announced a plan to establish 50 national AI standards by 2026, contributing to the global standardization of AI technology. MIIT established the AI Standardization Technical Committee to develop industrial standards in core fields such as large language models, datasets, software platforms, and AI risk management. Experts from major companies such as Baidu, Alibaba, Tencent, and Huawei participate in this committee. MIIT builds AI innovation hubs centered on major cities like Beijing, Shanghai, and Shenzhen, supporting the development of the AI industry in each region.

National Development and Reform Commission (NDRC)

NDRC sets the development of advanced technologies, including AI, as a national strategy, thereby strengthening China's economic and technological competitiveness. It provides large-scale funding for AI-related projects and promotes the commercialization and industrialization of AI technology. NDRC focuses on building core infrastructure such as data centers, supercomputers, and cloud platforms for AI research and development. NDRC aims to achieve innovation in various fields such as smart cities, smart agriculture, and smart logistics by integrating AI technology throughout the economy. Through this, it intends to make AI technology a core engine of China's economic growth. NDRC has set a goal to make China the world's largest AI innovation hub by 2030 and plans to expand the scale of AI-related industries to more than 10 trillion yuan.

China Institute of Information and Communications Technology (CIID)

CIID analyzes market trends and policy directions of AI technology and presents development strategies for the Chinese AI industry. It evaluates the economic and social impacts of AI technology and provides policy recommendations. CIID researches the safety and ethical issues of AI technology and seeks ways to minimize the negative impacts of AI technology on society. CIID actively participates in international standardization work to ensure that China's AI technology is competitive in the global market. It is expanding the international influence of Chinese AI technology. CIID integrates AI technology with the digital economy to create new business models and application cases. It ensures that AI technology becomes a major growth engine for the Chinese economy.

China's major national institutions perform different roles in the development and application of AI technology and cooperate to lead China as a global AI power. The Chinese Academy of Sciences (CAS) leads basic research, the Ministry of Industry and Information Technology (MIIT) is responsible for industrial policy and standardization, and the National Development and Reform Commission (NDRC) promotes AI industrialization through national strategy and funding. The China Institute of Information and Communications Technology (CIID) supports the responsible development of AI technology through market analysis and policy research. China's AI industry is led by major companies such as Baidu, Alibaba, Tencent, Huawei, SenseTime, and iFLYTEK. As China's largest search engine company, Baidu leads AI technology through the Apollo autonomous driving platform and the ERNIE language model, particularly leading the smart home market with Xiaodu smart speakers.

Alibaba introduced the Tongyi Qianwen language model through Alibaba Cloud and is actively utilizing AI technology in e-commerce and logistics. In particular, it is conducting innovative research in the medical field, such as multi-modal AI model development and RNA virus detection.

Tencent is integrating AI technology in various fields such as gaming, social networks, and medical services by developing the Hunyuan AI model centered on the Tencent AI Lab. It is making great progress in disease diagnosis and medical image analysis through medical AI technology in particular.

Huawei is showing strength in hardware by developing the Ascend AI chip series and is leading innovation in smart manufacturing and autonomous driving by combining 5G technology and AI. It is also significantly improving the efficiency of communication infrastructure through AI-based network automation and optimization.

SenseTime possesses global competitiveness in computer vision technology based on the SenseCore AI platform, showing outstanding performance in facial recognition and image recognition in particular. These technologies are utilized in various fields such as smart cities, medical image analysis, and autonomous driving.

iFLYTEK occupies an unrivaled position in speech recognition and natural language processing technology, providing innovative AI solutions in education and healthcare. Its AI-based voice translation technology, in particular, contributes significantly to facilitating global communication.

These major Chinese AI companies lead technological innovation in their respective specialized fields and show high competitiveness in the global market. They are accelerating the development of the digital economy and smart society through continuous research, development, and commercialization, playing a key role in the growth of China's AI industry to a world-class level. 7-2. Leading Figures in AI in the U.S. and China (1) United States: Sam Altman is the CEO and co-founder of OpenAI and one of the most influential figures in the field of artificial intelligence (AI). He founded OpenAI in 2015 with the goal of developing human-level artificial general intelligence (AGI). OpenAI led the popularization of AI technology through generative AI models such as ChatGPT and GPT-4, and Altman led the success of these projects. Previously, he served as the president of the startup accelerator Y Combinator, supporting numerous innovative startups. He emphasizes the ethical use and safety of AI technology, striving to ensure that AI can have a positive impact on humanity. Through cooperation with Microsoft, he integrated OpenAI's technology into the Azure cloud platform, accelerating the commercialization of AI. Altman majored in computer science at Stanford University but dropped out to start a business, and in the early days, he founded the social media startup Loopt. He predicts the social and economic changes that the development of AI technology will bring and actively participates in policy discussions to prepare for them.

Jensen Huang is the co-founder and CEO of NVIDIA and is evaluated as a pioneer in AI hardware and software innovation. He founded NVIDIA in 1993 and developed GPU (Graphics Processing Unit) technology, which has become a core tool for deep learning and AI model training. Under his leadership, NVIDIA plays a leading role in advanced technology fields such as AI, autonomous vehicles, data centers, and the metaverse. Jensen Huang transformed the GPU from a simple graphics processing unit into an essential technology for AI accelerated computing, accelerating the growth of the AI industry. He presents innovative visions such as the Earth-2 project to build a "digital twin of the Earth" and contributes to climate change research using AI. Jensen Huang obtained a bachelor's degree in electrical engineering from Oregon State University and a master's degree in electrical engineering from Stanford University. He was recognized for his management ability by being selected as the world's best CEO by Fortune and Harvard Business Review. NVIDIA's technology is utilized in various industries such as healthcare, finance, and manufacturing, contributing significantly to the commercialization of AI.

Jeff Dean is the Chief Scientist at Google, leading AI research at Google DeepMind and Google Research. Since joining Google in 1999, he has built the company's technical foundation by developing core Google technologies such as MapReduce, Bigtable, and Spanner. A world-renowned authority in deep learning and machine learning, he developed an open-source AI platform called TensorFlow, providing a powerful tool for AI researchers and developers. Jeff Dean led the company's innovation by integrating AI technology into major products such as Google's search engine, advertising system, and translation service. He earned a Ph.D. in computer science from the University of Washington, and his research focused on object-oriented programming languages and compiler optimization. Currently, he is leading the Gemini project at Google DeepMind, focusing on the development of next-generation generative AI models. Jeff Dean emphasizes the ethical use and fairness of AI technology and participates in research to minimize the impact of AI on society.

Yann LeCun is a pioneer of deep learning, famous for the development of convolutional neural networks (CNNs). He currently serves as the Chief AI Scientist at Meta (formerly Facebook), leading AI research and development. CNNs are utilized in various fields such as image recognition, speech recognition, and natural language processing, making a significant contribution to the development of AI technology. Yann LeCun established the Center for Data Science at New York University, laying the academic foundation for deep learning research. He worked at AT&T Bell Labs, developing CNNs and graph transformer networks, which significantly improved the efficiency of AI models. In 2018, he received the Turing Award, often called the "Nobel Prize of Computer Science," in recognition of his contributions to the field of deep learning. Yann LeCun focuses on establishing the theoretical foundation of AI technology and emphasizes the fairness and transparency of AI. He considers the impact of AI research on industry and society, striving to ensure that AI technology brings positive changes to humanity.

Dario Gil is the Senior Vice President and Director of Research at IBM Research, a technology leader driving innovation in AI and quantum computing. He leads the development of AI systems such as IBM Watson, focusing on providing business solutions using AI. Under his leadership, IBM Research performs world-class research in various advanced technology fields such as hybrid cloud, semiconductors, and quantum computing. Dario Gil serves as the co-chair of the MIT-IBM Watson AI Lab, contributing to the application of basic AI research to industry and society. He led IBM to provide the world's first programmable quantum computer via the cloud, which contributes to accelerating the speed of scientific discovery. Additionally, he serves as the chair of the National Science Board (NSB) in the U.S., playing an important role in establishing science and technology policies. Dario Gil emphasizes that the fusion of AI and quantum computing will play a key role in future problem-solving, pursuing innovation across science, business, and society. Key figures who will lead artificial intelligence (AI) policy in the Trump administration:

Donald Trump is the U.S. President re-elected in 2025, adopting an approach that emphasizes both innovation and national security in AI policy. During his first term (2017-2021), he promoted AI research and development (R&D) through the 2019 "American AI Initiative" and expanded accessibility to federal data and computing resources. In his second term starting in 2025, he revoked the Biden administration's regulation-centered AI policies and announced new executive orders to accelerate AI innovation. Trump regards AI as a core element of national security and plans to strengthen AI export controls and expand military AI development to maintain U.S. superiority in the technological competition with China. He has a vision of utilizing AI as a tool for economic growth and job creation, promoting the commercialization of AI technology through collaboration between companies and academia.

Elon Musk is expected to play an important role in relation to artificial intelligence (AI) policy in the Trump administration. He was appointed as the head of President Trump's "Department of Government Efficiency (DOGE)," tasked with reducing federal government spending and deregulating. Musk emphasizes that AI technology is core to the economic competitiveness and national security of the United States and is likely to propose policies that support AI infrastructure construction and research and development (R&D). In particular, he aims to improve government operation efficiency and reduce costs using AI, planning to accelerate the digital transformation of the federal government through this.

Musk is also at the center of controversy related to the Trump administration's large-scale AI project, the "Stargate" initiative. This project aims to invest 500 billion dollars in AI infrastructure over four years, but Musk took a critical stance, questioning the feasibility of the funding. Due to past conflicts and a competitive relationship with OpenAI, he is directly competing with OpenAI through his AI company, xAI, and is also likely to lead discussions on the ethical use and safety of AI technology.

Musk argues that AI technology is essential for maintaining global leadership for the United States and is expected to support the Trump administration's strategy to gain an advantage in the technological competition with China through AI deregulation and innovation promotion. However, his role is raising conflict-of-interest controversies in that his own companies, such as Tesla and SpaceX, could be affected by federal contracts and regulations. In this situation, Musk is expected to be positioned as an important advisor and a central figure of controversy within the Trump administration regarding the direction of AI policy.

These individuals play a key role in U.S. AI policy, contributing to the balanced pursuit of innovation, national security, and economic growth.

(2) China

Kai-Fu Lee, a pioneer of Chinese AI technology, was born in Taiwan in 1961 and earned a bachelor's degree in computer science from Columbia University and a Ph.D. from Carnegie Mellon University. He contributed to the development of speech recognition and AI technology at Apple, SGI, and Microsoft, and in 2005, he was appointed as the first president of Google China, strengthening Google's position in the Chinese market. In 2009, he founded Sinovation Ventures, a venture capital firm, to support AI and technology startups, and his book "AI Superpowers" caused a great sensation by analyzing the impact AI technology will have on the Chinese and global economies.

Qi Lu, born in the same year, 1961, received a bachelor's degree in computer science from Fudan University and a Ph.D. from Carnegie Mellon University. After building a career at global IT companies such as IBM, Yahoo, and Microsoft, he joined Baidu as COO in 2017, leading AI strategy, autonomous driving, and deep learning research. Currently, he supports the development of the AI industry through AI technology consulting and investment activities, emphasizing the creation of social value through AI technology and global cooperation.

Wang Haifeng, born in 1973, earned his bachelor's and master's degrees in computer science from the Harbin Institute of Technology and a Ph.D. from the Chinese Academy of Sciences. Recognized as a world authority in natural language processing and machine translation, he joined Baidu in 2010 and currently serves as CTO, leading the development of Baidu's large language model ERNIE series. He also contributes to user experience innovation by developing various applications such as smart search, voice assistants, and translation services using AI technology.

Liang Wenfeng, born in Guangdong Province in 1985, majored in Electronic Information Engineering and Computer Science at Zhejiang University and founded the AI startup DeepSeek in 2023. DeepSeek focused on developing low-cost AI models and recently gained global attention by announcing DeepSeek-R1, a reasoning AI model, at a lower cost than OpenAI's ChatGPT. Currently, with about 150 employees, he actively recruits young talent from Tsinghua University and Peking University to encourage AI research.

Tang Xiao'ou, born in 1970, received a bachelor's degree in electrical engineering from Tsinghua University and a Ph.D. in computer science from the University of Rochester, and contributed to computer vision and deep learning research while serving as a professor at the Chinese University of Hong Kong. In 2014, he founded the AI company SenseTime, growing it into a global leader in computer vision technologies such as facial recognition, object detection, and video analysis, and currently leads AI technology research and commercialization as chairman.

Jingren Zhou received a bachelor's degree in computer science from the University of Science and Technology of China and a Ph.D. from the University of Washington, and currently serves as the Chief Scientist at Alibaba Cloud. He contributed to the development of Alibaba's large language model Tongyi Qianwen and leads the practical application of AI technology in various fields such as smart logistics, financial risk management, and medical data analysis. He also contributes to strengthening China's AI technology competitiveness by accelerating the commercialization of AI technology through the global expansion of Alibaba Cloud.

China's key AI figures lead innovative technology development and commercialization in their respective specialized fields, emphasizing the importance of ethical AI use, data security, and global cooperation. Their efforts play a key role in developing the Chinese AI industry to a world-class level, and they continue to promote social value creation and economic innovation through AI technology.