COLD WAR II: Trump and Xi Are Talking — But the U.S. and China Are Headed for an AI Collision.

To understand the rivalry, consider a recent announcement by the U.S. Justice Department: on November 20, it charged two Americans, and two Chinese nationals, with a conspiracy to illegally export about 400 high-performance graphics processing units (GPUs) to China. Federal law requires that a license be secured for export of these technologies, which can be used to develop and strengthen AI.

The co-conspirators didn’t have a license – and never even applied for one. In fact, they lied about the destination of the GPUs when shipping them. And for their services, they received a cool $3.89 million in wire transfers from China.

The backdrop to this smuggling scheme is Beijing having set a goal for China to be the world’s leader in AI by 2030. And it’s made considerable headway. “China is the global leader in AI research publications and is neck and neck with the United States on generative AI,” points out the Information Technology and Innovation Foundation. It adds that China is “advancing rapidly in AI research and application, challenging the United States’ dominance in this critical field.”

Exit quote: “China is not abiding by the rules that are supposed to govern the global economy. And it’s using AI, says the Justice Department, to bolster its military, to test weapons of mass destruction, and to heighten surveillance.”