Data Centers are the New "Aircraft Carriers" - The Future of the US-China AI Competition: The Truth Behind the Technology War Between Trump and Xi

"The 'Cold War 2.0' for AI Dominance Has Begun"——An article from The Age dated July 30 describes the new AI strategies announced by U.S. President Donald Trump and Chinese President Xi Jinping just days apart. Both countries share the goal of "shaping the world through technology," but their approaches are contrasting. Below, we organize the differences and repercussions, incorporating voices from social media. Ground News

1. The Trump Administration's "AI Action Plan" — Deregulation and Hyper-Acceleration

• On July 24, President Trump signed a 90-item "AI Action Plan," emphasizing the removal of "red tape and 'woke'" to avoid stifling private innovation. ABCWebProNews

• The National Institute of Standards and Technology (NIST) was ordered to remove mentions of "misinformation" and "DEI (Diversity, Equity, and Inclusion)."

• The plan specifies easing permits related to environmental assessments and water resource impacts to expedite the construction of data centers and semiconductor fabs.

2. The Xi Administration's "National AI Comprehensive Plan 2025" — State-Led, Hard Tech Priority

• In Shanghai alone, a $13.9 billion subsidy for semiconductors and computing power is in place. The central government supports the "Project Spare Tire," aiming for a 70% domestic chip self-sufficiency rate by November. The Wall Street Journal

• At WAIC2025, the "Shanghai Consensus" was proposed to position open-source AI as an international standard, emphasizing cooperation with the EU and the Global South. WebProNews

3. Risks and Side Effects——Countdown to an AI Arms Race

Experts from WebProNews and MIT Tech Review warn that **"multilateral governance comparable to the Nuclear Non-Proliferation Treaty is urgently needed."** U.S. export controls may accelerate China's self-reliance, with many pointing out that a "sanctions spiral" could lead to technological decoupling and weaponization. WebProNews

4. Social Media Reactions — Divided Public Opinion

5. Future Scenarios

1. Concentration of Capital and Power

   • NVIDIA's market capitalization at $4.2 trillion, semiconductor monopoly. ABC

2. Division of Open vs. Closed Economic Zones

   • Chinese models expand the "Digital Silk Road" to developing countries — Dual AI standards. WebProNews

3. Struggle for Leadership in International Rule-Making

   • The G7 reinforces the "Hiroshima AI Process" based on "risk criteria." China is preparing to submit an alternative proposal at the United Nations.

6. Conclusion

The Age article points out that AI is no longer just a "technology" but an issue of "system choice." Both countries aim for dominance with an "anything goes" approach, but their values and governance models are diametrically opposed, forcing the world to choose. The key to risk reduction lies in whether technological standards and export controls can be shifted from "zero-sum" to "mutual benefit."

Image: White House photographer - Wikimedia Commons

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