Navigating Turbulence: The Challenge of Inclusive Innovation in the U.S.-China AI Race

Abstract

This chapter examines the impact of the geopolitical rivalry between the United States and China on the prospects for inclusive innovation in artificial intelligence (AI) development. We explore three critical aspects of the American and Chinese legal infrastructure that significantly impact AI innovation: data privacy, intellectual property (IP rights), and export restrictions. Through this comparative analysis, we argue that, while China's legal environment may offer certain advantage in terms of access to training data and IP protection, the United States maintains superior resources by enforcing strict export controls on semiconductor chips, AI models, as well as outbound investments in these areas. This nuanced examination helps illuminate how each country's legal framework could influence the ultimate trajectory of AI race and how the technological rivalry has led to exclusionary rulemaking on a global scale.