China's tech shock threatens the U.S. AI monopoly and is 'just getting started'

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China’s rapid advancement in AI is threatening to shake up U.S. dominance in the market, with one analyst warning of a tech shock that is just getting started.

Rory Green, TS Lombard’s chief China economist and head of Asia research, told CNBC’s “Squawk Box Europe” on Monday that America’s “perceived monopoly” on tech and AI has been broken by China.

“I think the China tech shock is just getting started. It’s not just AI, DeepSeek, and electric vehicles. China is moving up the value chain very rapidly... It’s the first time in history that an emerging market economy is at the forefront of science and technology,” Green said in a conversation with CNBC’s Steve Sedgewick and Ben Boulos.

China is pairing dominant-market level tech with emerging-market production costs, backed by its massive supply chain, Green said. He added that with Xi Jinping being like a “tech bro” that is chucking money into these sectors, it makes for a powerful mix that is really rapidly accelerating the China tech story.