Issue Brief on “The U.S.-China AI and Digitalization Race: Geopolitical Implications and Strategic Trajectories”

The growing advancements in the field of Emerging and Disruptive Technologies (EDTs) between the United States and China signify one of the most critical technological, geopolitical, and security competitions of the 21^st century. As both states are vying for technological dominance, AI-driven advancements in economic development, military capabilities, and global digital infrastructure are impacting global strategic stability. One of the most recent examples of this competition has been marked by the emergence of sophisticated AI models and chatbots that work on Large Language Models (LLMs) and Natural Language Processing (NLP) to understand demands and questions of the users and generate responses to them, like China's DeepSeek and the U.S.'s OpenAI's ChatGPT. This new competition in technological dominance has brought more complexity to the already existing tech race and has signaled broader challenges for developing digital sovereignty, regulatory frameworks, and leadership in AI innovation. The U.S. and China are currently involved in efforts to establish their supremacy in EDTs and also to gain control of AI ecosystems, military advancements, and global economic influence.