China’s AI Breakthroughs: US Export Sanctions May Be Accelerating, Not Stopping, Technological Growth. (Photograph/UCLA Luskin School)
(EPICSTORIAN) – In a bid to curb China’s artificial intelligence (AI) growth, DeepSeek AI has emerged despite United States export control challenges.
However, experts now suggest these measures may have inadvertently accelerated China’s technological progress rather than stalling it.
“Rather than impeding China, these AI export controls may be pushing them to innovate,” said John Villasenor, a professor at UCLA specializing in engineering and law. “The export controls, arguably, are counterproductive.”
In an interview with CNN, AI researcher Gary Marcus echoed similar sentiments, emphasizing that the restrictions have led China to improve its technical prowess. “We accidentally upped their technical game,” he wrote in a Substack post. “It is clear that the game has changed.”
With former President Donald Trump re-election and subsequent signing of multiple executive orders, Washington policy analyst Ed Mills anticipates even harsher restrictions. “I think Trump doubles down,” Mills noted, pointing to Trump’s reliance on China hawks such as Secretary of State Marco Rubio. “His advisers around him point to more restrictions, not less.”
The implications of China’s AI advancements remain uncertain. Jeffrey Sonnenfeld, senior associate dean at Yale School of Management, described the situation as a “Sputnik Moment or a Potemkin Moment.”
He explained, “It is either truly disruptive or deceptive, relying on hoarded Nvidia chips and others before the export sanction.” If it turns out to be a “Sputnik-style disruption,” Sonnenfeld argued, it would challenge the notion that free markets alone can drive innovation without government intervention.
One of the most striking claims comes from DeepSeek AI, a Chinese AI firm, which allegedly possesses 50,000 cutting-edge chips despite US sanctions. “They can’t talk about it, obviously, because it is against the export controls,” said Scale AI CEO Alexandr Wang in an interview with CNBC.
However, some experts remain skeptical. Art Hogan, chief market strategist at B. Riley Wealth Management, urged caution regarding DeepSeek’s claims. “China is claiming it has come up with the silver bullet,” he said. “But it could be like the guy in high school who says he has a girlfriend, but she’s just at a different school.”
The evolving AI race between the US and China has become a cat-and-mouse game. “This has been a game of whack-a-mole,” Mills remarked, noting that regulatory loopholes still exist.
National Security Adviser Jake Sullivan acknowledged the ongoing struggle, stating, “This is an iterative process. We learn, they learn. We learn, they learn.”
China, meanwhile, appears undeterred. “The PRC has embarked on a massive and relentless information campaign,” Sullivan said. “They are essentially saying, ‘This is futile. Resistance is futile. We will break these controls.’”
