China, U.S. Remain Bound in AI Race Despite Trade Tensions, Insiders Say
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Ben Harburg, managing partner at Novo Capital, and Joleen Liang, co-founder at Squirrel AI Learning, speak at the China Summit at Web Summit in Lisbon on Nov. 11. Photo: Web Summit
(Lisbon, Portugal) — Despite escalating export controls and a race for tech sovereignty, China and the U.S. remain locked in an AI ecosystem that neither side can fully detach from, investors and scholars said at a major tech conference.
The world’s two largest economies are bound by open-source models, shared business incentives and the exchange of talent, said speakers at Web Summit Lisbon, one of the world’s largest tech conferences, which drew more than 71,000 attendees from 157 countries to the Portuguese capital from Nov. 10 to Nov. 13.
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- The U.S. and China remain deeply interconnected in AI through open-source models, business incentives, talent exchange, and supply chains, despite rising export controls and tech sovereignty efforts.
- Chinese AI models and talent are increasingly prominent, with China leading in scale and application, but U.S. foundational breakthroughs remain critical; joint research and cross-border teams dominate innovation.
- In October 2024, both countries agreed to suspend new export restrictions on rare earths and certain export controls for one year following a summit meeting.
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Who’s Who
- Caixin
- Caixin is a media outlet. This article features an interview with Larry Li, founding partner of venture capital firm Amino Capital, who spoke to Caixin on the sidelines of Web Summit Lisbon. Additionally, Kelsey Cheng and Michael Bellart are listed as contacts for the article, indicating their roles as reporter and editor for Caixin, respectively.
- Amino Capital
- Amino Capital is a Silicon Valley-based venture capital firm. Larry Li, a founding partner, notes that the firm was an early investor in successful tech companies like Zoom. Li believes the U.S. excels in "0-to-1 breakthroughs" in AI, while China is better suited for "1-to-1,000 scale-ups" due to its larger market and engineer pool.
- Zoom
- Zoom is mentioned as an early-stage tech winner that was backed by Silicon Valley-based venture capital firm Amino Capital. Amino Capital's founding partner, Larry Li, highlighted that the firm's portfolio includes unicorns often built by teams with international experience, such as immigrants or those who studied overseas.
- DeepSeek
- DeepSeek is a Chinese AI model that has gained significant recognition in the field of large language models (LLMs). It was released approximately nine months prior to the Web Summit Lisbon conference. Its emergence has contributed to the increasing dominance of Chinese AI models in the rankings of best LLMs.
- Novo Capital
- Novo Capital is a venture capital (VC) firm. Ben Harburg, managing partner at Novo Capital and a longtime China investor, spoke at the China Summit, part of Web Summit. He noted China's "late mover advantage" in technology, allowing it to create successful digital products. Harburg also highlighted the reliance of U.S. AI labs on Chinese talent.
- TikTok
- TikTok is cited as an example of a viral short video platform. It, along with fast-fashion brand Shein, represents the "incredible suite of business and consumer-facing products" China developed, which were perfectly suited for the digital native Gen Z. This highlights China's success in scaling applications for consumer markets.
- Shein
- Shein is a fast-fashion brand cited as an example of China's success in building business and consumer-facing products perfectly suited for "digital native Gen Zs of the world."
- Nvidia Corp.
- Nvidia Corp. is an American multinational technology company. Its CEO, Jensen Huang, stated in May that "Fifty percent or more of America’s AI runs on Chinese brains." This highlights the significant reliance of U.S. AI labs on Chinese talent.
- Squirrel Ai Learning
- Squirrel Ai Learning is a Chinese edtech firm, founded in 2014, that uses a large adaptive model to personalize lessons for K-12 students. Co-founder Joleen Liang stated their strategy to enter the North American market, despite challenges, to expand beyond China.
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What Happened When
- 2010：
- The share of team leaders affiliated with Chinese institutions in joint U.S.-China research projects was 30%.
- 2015：
- Around 80–90% of Squirrel Ai Learning's scientists are based in the U.S., with a minority from China.
- 2023：
- The share of team leaders affiliated with Chinese institutions in joint U.S.-China research projects reaches 45%.
- 2024-2025 academic year：
- China remains the second-largest source of international students in the U.S., according to a report published in November 2025.
- 2025：
- The U.S. tightens advanced semiconductor exports to China.
- About nine months before Nov. 10, 2025 (Approximately February 2025)：
- DeepSeek was released, noted as a milestone for Chinese AI models in the months leading up to late 2025.
- May 2025：
- Nvidia Corp. CEO Jensen Huang comments on the significant contribution of Chinese talent to U.S. AI, referenced by Ben Harburg at the 2025 Web Summit.
- Late September 2025：
- The U.S. announces the 50% or more 'affiliates rule' for export controls.
- Early October 2025：
- China unveils sweeping new export restrictions on rare earths and related technologies.
- Late October 2025：
- A study documenting Chinese participation in joint U.S.-China science research is published in the Proceedings of the National Academy of Sciences.
- Oct. 30, 2025：
- A meeting between President Xi Jinping and U.S. President Donald Trump takes place in South Korea, leading to a one-year suspension of export controls by both China and the U.S.
- Nov. 10, 2025 to Nov. 13, 2025：
- Web Summit Lisbon, one of the world’s largest tech conferences, takes place in Lisbon, Portugal, attracting more than 71,000 attendees from 157 countries.
- Nov. 18, 2025：
- The Institute of International Education publishes a report sponsored by the U.S. State Department, detailing international student demographics for the 2024-2025 academic year.
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