Chinese Scholar Says US AI Supply Chain Alliances Will Fail

US AI supply chain strategy faces fundamental flaw, academic argues

Washington's efforts to build international alliances around artificial intelligence and semiconductor supply chains are fundamentally flawed and destined to fail, according to a prominent Chinese political scientist speaking at a weekend conference.

Zheng Yongnian, dean of the School of Public Policy at the Chinese University of Hong Kong, Shenzhen, criticized US frameworks including Pax Silica, the chip alliance, and the rare earth alliance for explicitly targeting China as a third party. He argued this approach guarantees failure and suggested the two largest economies should instead collaborate on driving global economic development.

Why it matters

The assessment reflects how Beijing views Washington's strategy to secure critical technology supply chains through coalition-building. As the US expands restrictions on AI technology exports and semiconductor access, understanding China's counterarguments helps business leaders anticipate how this technological rivalry will shape global markets and supply chain decisions.

Competing visions for AI governance

The technological rivalry between the United States and China has intensified in recent months, with both nations establishing competing international frameworks. Washington has created multiple groupings aimed at curbing Beijing's momentum in artificial intelligence, semiconductors, and critical minerals.

Recent reporting by Reuters revealed that a draft State Department document warned potential Pax Silica members they could face exclusion if they joined China's alternative World Artificial Intelligence Cooperation Organisation. This either-or approach exemplifies the pressure Washington is placing on third countries to choose sides in the technology competition.

Zheng also argued that US efforts to restrict American companies' access to lower-cost Chinese AI models would backfire, though he did not elaborate on the specific mechanisms of this predicted failure.

Escalating restrictions

The White House has been considering additional measures to constrain China's AI development. According to Axios reporting last month, several Chinese AI labs may be added to a blacklist that would restrict their ability to use US technology.

These potential restrictions come as both nations race to establish dominance in artificial intelligence development and deployment. The competition extends beyond pure technology to encompass the raw materials, manufacturing capacity, and international partnerships needed to sustain AI advancement.

Zheng's alternative vision calls for US-China collaboration focused on generating external demand through global economic development, which he argues would sustain long-term growth for both economies. This represents a stark departure from the current trajectory of technological decoupling and competitive alliance-building.

These details were first reported by the South China Morning Post, which covered Zheng's remarks at the Sunday conference.