New Report Warns of Growing National Security Threat as China Advances AI Technology

A new report from the pro-tech advocacy group American Edge Project highlights the rising national and economic security threat posed by China’s rapidly advancing artificial intelligence (AI) technology. The report warns that China’s open-source AI approach could undermine U.S. leadership and influence on the global stage.

“China is rapidly advancing its own open-source ecosystem as an alternative to American technology and using it as a Trojan horse to implant its CCP values into global infrastructure,” the report states.

It further warns that “Chinese-developed open-source AI tools are already outperforming Western models on key benchmarks, while operating at dramatically lower costs, accelerating global adoption.” Through initiatives like the Belt and Road Initiative (BRI) and Digital Silk Road (DSR), China is exporting its technology worldwide, fostering dependence on its systems while undermining democratic norms and U.S. global influence.

The report underscores significant concerns about China’s censorship efforts. AI models developed under Beijing’s oversight are programmed to suppress topics like historical events critical of China, downplay human rights violations, and stifle political criticism.

China’s $1.4 Trillion Tech Domination Plan

China has embarked on an ambitious $1.4 trillion plan to dominate global technology by 2030. Open-source AI systems are a cornerstone of this strategy. “While many Western companies focus on paid, proprietary AI models, China is aggressively promoting free and low-cost alternatives to drive rapid global adoption,” the report notes.

The document describes Beijing’s aim to embed its AI systems into global infrastructure, from finance to communication networks. By promoting free access to these technologies, the Chinese government hopes to establish its standards worldwide while integrating mechanisms of control aligned with CCP values.

Regulatory Gaps Between China and the U.S.

The report contrasts the U.S. and Europe’s regulatory focus with China’s aggressive AI deployment strategy. “While American and European governments focus on regulating AI, China is aggressively pushing its AI systems into global markets,” the report states. This mirrors China’s strategy in 5G technology, where Huawei’s low-cost solutions captured significant global market share before Western nations could react.

One example cited is Alibaba Cloud, a Chinese company that has released over 100 open-source models in 29 languages, saturating the global market while Western firms navigate complex regulations.

Recommendations to Protect U.S. AI Leadership

The report offers several policy recommendations, including seizing the “historic opportunity to secure lasting American AI leadership” and avoiding “unilateral restrictions on exporting and access to U.S. AI systems.”

Doug Kelly, CEO of the American Edge Project, emphasized the stakes in an interview with Fox News Digital. “If America loses the global race to dominate both open-source and closed-source AI technology, authoritarian Chinese systems will write the future, and Washington policymakers can’t let that happen,” Kelly warned.

The report concludes with a sobering assessment of the implications of Chinese AI dominance:

“A world of unchecked, Beijing-built AI ecosystems would be a major blow to the U.S. and to humanity writ large. If Chinese AI goes global, so too will brazen non-compliance with international agreements on the technology,” it states, quoting a warning from the Center for a New American Security.