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On AI, the US and China have an outdated arms race mindset

22 Jun 2026
2 min

AI Policy Approaches in the US and China

Recent actions by the US and China highlight their strategic approaches to AI, treating it as a critical element of national security.

China's Approach

  • Beijing has restricted overseas travel for top AI engineers from major firms such as DeepSeek and Alibaba.
  • This move indicates a view of AI expertise as sensitive, akin to nuclear knowledge.

US Approach

  • The US has directed companies like Anthropic to suspend frontier models for foreign nationals, including their employees.
  • A widely used commercial AI product was removed from the market, highlighting the treatment of AI as a security concern.

Underlying Narrative

Both countries see AI as part of a zero-sum arms race, reflecting national security perspectives that liken AI to weapons of mass destruction.

  • This narrative has shaped policy instruments such as export controls and chip hardware tracking.
  • However, AI differs from nuclear technology as it is widely reproducible and constantly evolving.

Alternative Framing: Geopolitical Innovation Race

An alternative view considers AI as part of a global innovation race with economic and market incentives.

  • Key policy instruments include compute investment, skilling, and strategic partnerships.
  • Such an approach emphasizes collaboration and competition among public and private sectors worldwide.

India's Strategic Response

As a middle power, India should embrace AI as a general-purpose technology and focus on widespread diffusion.

  • Adopt regulatory clarity and sector-specific deployment strategies to enhance AI adoption.
  • Foster coalitions, especially with entities like the EU, to share development costs and create reliable supply chains.
  • Encourage open-source and open-standard models to ensure resilience against unilateral control.

Example of AI Integration

The Supreme Court of India's draft guidelines on AI tool usage in courts exemplify potential AI utility in public services.

Priorities for Maximizing AI Benefits

  • Diffusion over Denial: Prioritize infrastructure and adoption over restricting AI distribution.
  • Plurilateral Resilience: Build alliances to leverage complementary strengths.
  • Open over Closed: Open models and standards enhance resilience and prevent dependency on controlled systems.

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RELATED TERMS

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Open-source and open-standard models

Refers to AI models whose source code is publicly available for modification and distribution (open-source), and technical specifications that are widely accessible and agreed upon (open-standard). These approaches promote collaboration, innovation, and prevent dependency on proprietary or monopolistic systems.

Plurilateral Resilience

A strategy involving cooperation among a select group of countries (more than two but not all) to build collective strength and adapt to challenges. In AI, this implies forming alliances to share development costs, create robust supply chains, and mitigate risks associated with unilateral control of AI technologies.

General-purpose technology (GPT)

A technology that has the potential to affect an entire economy, undergoing continuous technological improvement and having wide-ranging applications. AI is increasingly viewed as a GPT, meaning its impact will be pervasive across various sectors and industries, similar to electricity or the internet.

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