President Trump’s imposition of tariffs could unintentionally provide a significant advantage to China, aiding its progress in the global AI competition and enabling it to forge new international partnerships, according to Adam Thierer, a senior fellow at the R Street Institute, a center-right think tank. Thierer expressed these concerns to Fortune.
Thierer highlighted the difficulties faced by the United States in maintaining a competitive edge in the so-called AI Cold War, particularly if its trade policies are simultaneously destabilizing global markets, deterring technological investments, and potentially weakening traditional alliances with key allies. He shared these insights during his testimony before House lawmakers, emphasizing the risks posed by Chinese AI models like DeepSeek to U.S. national security.
These trade policies are disrupting the global supply chain and creating significant volatility, which may inadvertently push U.S. allies toward China for their technological needs. Such a shift provides China with an unprecedented opportunity to increase its global technological dominance. Thierer pointed out that, as a result of this trade turmoil, European Union officials are seeking discussions with China. Chinese companies, such as Huawei, are eager to offer telecommunications hardware and AI models, often at no charge.
Nevertheless, Thierer warned that Chinese technology comes with embedded values, noting that Chinese-made hardware might include surveillance and censorship capabilities. This technological control could grant China leverage over nations that adopt these systems in the future.
He noted China’s focus on "technological diffusion," which involves spreading technology across various sectors and countries. Historically, the U.K. and the U.S. led previous industrial revolutions by developing effective, cost-efficient products and services. China aims to achieve similar success with its open-source AI models, like DeepSeek.
Thierer urged technology executives to adopt a unified response. Despite significant donations to Trump’s inauguration fund by tech leaders such as Elon Musk, Mark Zuckerberg, Jeff Bezos, and Sam Altman to influence tech policy, Thierer stressed the importance of a collective stance by the tech community. Such unity would underscore the potential undermining of U.S. global AI supremacy by these trade policies.
Drawing a parallel to the post–World War II era, Thierer mentioned how the motion picture industry played a vital role in spreading American culture and values, highlighting its strategic importance. He expressed concern that by retreating from the global marketplace, the U.S. could leave a gap for China and the CCP to fill with their technology, viewing this as a perilous scenario for America.
