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Trump is helping China win the AI race


Karman Lucero warns that domestic disarray could give America’s main strategic competitor control over key technologies.

While many local governments continue to grapple with mounting fiscal pressures, especially in the wake of costly zero-COVID policies, leading cities have benefited from a combination of world-class infrastructure, targeted state subsidies for the tech sector (both direct and indirect), and synergies between hardware and software firms. These agencies work through affiliated think tanks like the China Academy of Information and Communications Technology(CAICT) and industry groups such as the Cyber Security Association to convene regular dialogues with private-sector developers and academic experts. DeepSeek is a prime example: its rapid adoption – both at home and abroad – combined with limited content moderation, small compliance teams, and relatively lax censorship protocols could raise red flags for regulators like the CAC.

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