US panel credits China’s AI edge to open-source models, manufacturing dominance
American Congressional commission concludes China’s open ecosystem has seen performance gaps narrowed with top Western large language models

“It is the intersection of these two loops – one digital, one physical – that gives China’s open strategy its compounding force and poses the most serious long-term challenge to US AI leadership,” the United States-China Economic and Security Review Commission wrote in its report.
“This open ecosystem enables China to innovate close to the frontier despite significant compute constraints. Chinese labs have narrowed performance gaps with top Western large language models,” the report said.
How much Chinese firms are spending on AI in total, compared to the hundreds of billions of US dollars their American competitors are spending, remains difficult to determine, with investment often opaque and some companies likely benefiting from state subsidies.
