White House and tech giants clash over how to respond to fast-moving Chinese tech
Open-source Chinese AI models and mass production of AI chips unsettle markets and split U.S. policymakers and tech companies; FCC has moved to block imports of certain Chinese humanoid robots.
The White House and major technology firms are locked in a debate over how to respond to rapid advances in Chinese artificial intelligence, chip manufacturing and robotics, even as U.S. authorities have already taken concrete steps in robotics policy.
At the centre of the disruption are Chinese open-source models that are freely downloadable, notably the Kimi K3 from Moonshot AI. Those models are reported to deliver performance comparable to offerings from OpenAI and Anthropic while avoiding the high costs associated with some U.S. rivals.
The development has also shaken financial markets: news that China has begun mass production of specialized chips for artificial intelligence contributed to a fall in the market value of global chipmakers amounting to more than one trillion dollars.
Split views inside Washington and Silicon Valley
The divide shows up both inside the White House and across the technology sector. OpenAI and Anthropic have warned of security risks posed by Chinese models, while chipmakers see an opportunity for larger sales if AI use expands rapidly. Startups pressed to use cheaper models argue against restricting access.
Treasury Secretary Scott Bessent signalled the possibility of sanctions against Chinese companies over alleged intellectual property theft. At the same time, leading technology firms — Microsoft, Nvidia, Palantir and Meta — urged lawmakers not to impose limits on open-source models. Nvidia’s CEO Jensen Huang also lobbied members of Congress against restrictions.
President Donald Trump warned regulators to be cautious about heavy-handed measures. "We have to be cautious. We don't want to impose restrictions and suddenly end up in second place behind China. I know many of these people and I don't want to stop them from doing their work," Trump said.
Meanwhile, the Federal Communications Commission (FCC) voted to ban the import of humanoid robots from Chinese manufacturers such as Unitree, citing national security concerns and the risk of espionage or data collection.
Photo: press material from the event
