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Illustration: Lazaro Gamio / Axios

China is in the midst of an artificial intelligence frenzy, spurred in part by the "Next Generation Artificial Intelligence Development Plan" Beijing released in July that promises huge policy and financial support in pursuit of expansive goals between now and 2030.

The big question: Will AI sharpen competition between the US and China? Right now, the most likely outcome is that it will.

A white paper by Kai-Fu Lee, founder of Sinovation Ventures and a world-renowned AI researcher, and Paul Triolo, head of Eurasia Group's Geo-technology practice, argues that China and the US are already in a global AI duopoly because China has several structural advantages for AI development:

  • Huge data sets generated by nearly a billion Internet users and few privacy restrictions.
  • A rapidly growing pool of talented Chinese AI engineers.
  • Some of the best and most aggressive entrepreneurs in the world.
  • A very supportive government policy, including significant financial support.

The big picture: China's AI plan is part of the Chinese government's blueprint for becoming a superpower and achieving "the great rejuvenation of the Chinese nation," while maintaining Communist Party control.

  • As Elsa B. Kania, a fellow at the Center for a New American Security, recently wrote: "China plans to pursue cutting-edge advances in a category of critical next-generation AI technologies in order to "occupy the commanding heights" of AI science and technology."
  • Kania also wrote that the Chinese government "plans to leverage its rise in AI to enhance national competitiveness, while bolstering its capacity to ensure state security and national defense." It plans to "leverage AI to create systems for intelligent monitoring and early warning and control of potential (or perceived) threats."

The bottom line: China has the data, the talent, the money, the regulatory environment and the government vision to become an artificial intelligence superpower. As in an increasing number of other areas, US-China AI competition is far more likely than cooperation.

Go deeper: Battlefield Singularity: Artificial Intelligence, Military Revolution, and China's Future Military Power by Elsa B. Kania

Go deeper

Updated 20 mins ago - Economy & Business

2020 was the economy's worst year since 1946

Source: FRED; Billions of chained 2012 dollars; Chart: Axios Visuals

One of the last major economic report cards of the Trump era lends perspective to the historic damage caused by the pandemic, which continued to weigh on growth in the final quarter of 2020.

By the numbers: The U.S. economy grew at a 4% annualized pace in the fourth quarter, a sharp slowdown in growth compared to the prior quarter. For the full year, the economy shrank by 3.5% — the first annual contraction since the financial crisis and the worst decline since 1946.

Dion Rabouin, author of Markets
2 hours ago - Economy & Business

How GameStop exposed the market

Illustration: Eniola Odetunde/Axios

Retail traders have found a cheat code for the stock market, and barring some major action from regulatory authorities or a massive turn in their favored companies, they're going to keep using it to score "tendies" and turn Wall Street on its head.

What's happening: The share prices of companies like GameStop are rocketing higher, based largely on the social media organizing of a 3-million strong group of Redditors who are eagerly piling into companies that big hedge funds are short selling, or betting will fall in price.

Caitlin Owens, author of Vitals
3 hours ago - Health

Who benefits from Biden's move to reopen ACA enrollment

Photo: Chip Somodevilla/Getty Images

Nearly 15 million Americans who are currently uninsured are eligible for coverage on the Affordable Care Act marketplaces, and more than half of them would qualify for subsidies, according to a new Kaiser Family Foundation brief.

Why it matters: President Biden is expected to announce today that he'll be reopening the marketplaces for a special enrollment period from Feb. 15 to May 15, but getting a significant number of people to sign up for coverage will likely require targeted outreach.