September 25, 2026

U.S.-China AI Competition: The Struggle for Talent and Technological Leadership

The U.S. government under President Donald Trump aimed to exclude China from accessing America’s top technologies, positioning this as a core strategy in the AI race. However, many researchers who bolster America’s AI progress have origins in China. President Xi Jinping’s state visit on September 24 highlights artificial intelligence as a key issue between the two nations. The two countries have deliberated over incorporating a previously agreed AI dialogue into a broader economic session.

President Trump emphasized the importance of winning the AI battle, indicating that any restrictions on technology could favor China’s interests.

The Role of Talent in AI Leadership

America’s lead in AI heavily depends on talent from abroad. Notably, many researchers from China contribute significantly. Yao Shunyu, trained at Tsinghua and Princeton, shifted from OpenAI to Tencent in 2025, driving China’s long-term AI ambitions. Yang Zhilin, another example, returned to China in 2023 after studying in the U.S., creating Moonshot AI, which succeeded significantly.

These moves reflect an ongoing shift, with factors such as visa uncertainties and a growing atmosphere of suspicion playing roles. A study from the Carnegie Endowment for International Peace highlighted that due to these factors, Chinese researchers face increased challenges staying in the U.S. Sheehan and Zhuang from Carnegie tracked 100 prominent Chinese-origin AI researchers in the U.S., noting that 10 had relocated to China by 2025.

Despite challenges, 87 researchers of the original group remained in the U.S., contributing to major tech firms or academic institutions. This indicates a significant Chinese influence in maintaining U.S. competitiveness in AI research.

Challenges in Recruiting New Talent

Attracting new AI researchers to the U.S. is becoming increasingly difficult. According to data from the Paulson Institute and Carnegie updates, Chinese graduates among top-tier AI contributors rose to 47% by 2022. However, their presence in U.S. institutions dropped to 42%, while those returning to China grew to 28%.

Similar challenges are highlighted by visa policy proposals restricting Chinese students, leading to uncertainty over completing studies or securing U.S. employment.

There are signs that racial profiling concerns have impacted Chinese researchers’ experiences in the U.S., with Princeton reporting significant departures of scholars of Chinese descent.

Redefining Success in the AI Race

There’s little consensus on what constitutes victory in the AI race. Some Chinese officials deem American AI models as tools for propaganda, while U.S. officials express urgency in winning the AI competition. Treasury Secretary Scott Bessent stressed the existential stakes of China’s potential lead in AI.

Chris Miller from Tufts University believes leadership involves having the most advanced AI companies. Meanwhile, David Lin suggests the importance lies in translating AI advancements into tangible benefits.

Sheehan and Zhuang advocate for investment in education, stable research funding, and clear visa policies to retain global AI talent in the U.S., emphasizing the importance of including Chinese researchers.

These issues remain priorities beyond formal discussions on September 24.

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