China's open-source AI models are challenging US dominance, driving intense competition. Chinese firms are gaining market share through lower-cost AI inference and state support. The race for AI supremacy is intensifying, with firms seeking massive funding rounds.

Chinese AI companies launch new models, narrowing the gap with Silicon Valley. Anthropic has 93.5% YES for best AI model by August 2026, while Alibaba at 0.2% Y.

On critical technologies, Beijing subsidises market share, assists industrial-scale IP theft, and shuts its markets to competitors. Its AI strategy is similar.