China-US Artificial Intelligence (AI) Race: The US Leads, China Closely Follows
The United States is currently leading in the artificial intelligence race, but this advantage could disappear without bold investments in energy, infrastructure, and regulatory reforms, allowing China to shape the future of technology.
Currently, the United States holds a dominant position in the AI race. Almost all cutting-edge large language models, super-large data centers, and innovative chip designs originate from within the U.S. However, our leadership is fragile. Without the infrastructure to maintain this advantage—especially electricity, critical minerals, and computing power—the U.S. advantage could vanish almost overnight.
Even though the U.S. holds the lead, China is closely following, backed by strong national support and a willingness to rapidly build digital infrastructure. But we won't defeat China through good intentions or overly sophisticated regulations. Instead, if we want to maintain our lead, we must build quickly, on a large scale, and with purpose.
State Leadership
That's why states like Virginia, Pennsylvania, Missouri, Idaho, and Texas must work to expand energy production, access to critical minerals, and build AI infrastructure. Northern Virginia has the world's largest concentration of data centers, reflecting Governor Glenn Youngkin's commitment to making Virginia a national leader in AI. During an event in July, Senator David McCormick and President Donald Trump jointly announced over $90 billion in investments for new energy and data center development in Pennsylvania. In Missouri, Idaho, and Texas, large AI infrastructure projects, as well as initiatives to mine and process critical minerals that power chip production and other key national security needs, are also underway.
The question now is whether other parts of the U.S. will follow or fall behind. While some states are leading, long-term success in the AI competition with China and other rivals depends on broader national efforts—coordinating federal and state policies, removing regulatory barriers, and treating energy infrastructure as a strategic priority.
Federal Action Is Underway
To that end, President Trump has taken meaningful steps. His administration's AI action plan aims to accelerate energy development, while federal agencies are working to curb excessive regulation, open federal land for data centers and power plants, and streamline and expedite financing for energy infrastructure and critical mineral projects.
However, there is still much work to be done. Some estimates suggest that simply to maintain AI development, the U.S. needs to increase at least 50 gigawatts (and possibly more) of power generation capacity in the coming years. We urgently need investment in the grid and transmission lines to deliver this power where it is needed.
Unfortunately, many politicians still prefer to set obstacles rather than achieve results. Moreover, the strongest opposition does not come from the usual suspects in coastal elite enclaves; some of the most vocal opposition comes from legislators in states that are most likely to benefit. If we truly want to beat China, politicians like Senator Elizabeth Warren, who have long obstructed critical energy development, should either step down or be defeated.
Breaking Policy Stalemates
Overcoming bad policies and accelerating technological development requires participation from everyone. This means moving away from over-reliance on outdated environmental regulations that make it nearly impossible to expand our access to critical minerals, as well as natural gas, nuclear, solar, and geothermal resources. Adhering to such policies would harm our global technological leadership and the economic and national security interests that come with it. AI itself can make our energy consumption, critical mineral mining, and processing cleaner and more efficient, but only if we have the backbone to build it now.
It's time to abandon the idea that domestic energy is unprofitable or unwise. The shale oil and gas revolution has already proven this wrong, and the upcoming small modular reactor boom, along with domestic mining and processing of critical minerals, will prove it again. Since we urgently need to put these newly acquired domestic energy resources to use, we cannot delay these efforts any longer.
There is no doubt that these infrastructure developments require significant capital investment. But the idea that taxpayers need to pay for it is completely wrong. Private sector investors and innovators have already seen the opportunity. The real obstacle is the layers of federal, state, and local bureaucracy, as well as endless nuisance lawsuits filed by radical organizations supported by lawyers.
A Five-Point Plan
The government can address these obstacles in five key ways: First, the government can speed up the approval process and urge the states to do the same. Second, Congress can incentivize private sector investment in critical projects. Third, if it serves our economic and national security interests, lawmakers can empower the president to waive outdated legal requirements that hinder the development of key technologies. Fourth, Congress can prioritize resolving conflicting state laws. Fifth, the government can combat nuisance lawsuits by tightening litigation rules or limiting lawyers' fees.
The Stakes for America's Future
States that seize this once-in-a-lifetime opportunity will experience massive, exponential economic growth over the next decade. On the other hand, states that hesitate will inevitably fall behind. We have already seen California's worsening situation. Under Governor Gavin Newsom, rolling blackouts and the continued exodus of leading tech startups from the state are accelerating.
Maintaining our technological edge in the face of China's large-scale government-led actions doesn't require more bureaucracy—it requires backbone. The U.S. has the talent, energy, and perseverance to lead the future. Now, we need political courage and determination to achieve this goal. It's time to build and time to make choices: lead the future or fall behind.
Source: The National Interest
Author: Jamil N. Jaffrelot
Date: September 15
Original: www.toutiao.com/article/1843418373570688/
Statement: This article represents the views of the author.