Can’t have both: Washington to ask countries to choose between US or China in the AI race
China’s embassy in Washington said Beijing opposes politicising trade and technology issues, warning such actions would “stifle global AI advances”.
- Aug 17, 2026,
- Updated Aug 17, 2026 2:42 PM IST
The United States is preparing to inform dozens of countries that they must choose sides in the artificial intelligence race between Washington and Beijing. According to a US official and an internal draft reviewed by Reuters, countries joining China’s competing AI framework could be excluded from a US-led coalition.
The draft letter, prepared by the US State Department, is addressed to 35 countries that signed the US ‘AI Opportunity Statement’ in June. This group includes members of the non-binding Pax Silica framework and other countries seeking closer AI cooperation with Washington.
The US launched Pax Silica last year to secure supply chains for AI models, semiconductors, and critical minerals amid growing technology competition with China. About two dozen countries have joined the initiative, including Japan, Australia, South Korea, and Kazakhstan, a major potential source of critical minerals.
Kazakhstan has also joined a rival Chinese initiative, making it the only country known to be part of both frameworks. This has raised concerns in Washington.
The draft letter states, “To be part of everything is to be part of nothing,” urging countries to “choose deliberately” on AI. It says membership in Pax Silica cannot be held alongside “duplicative initiatives” with conflicting expectations, without specifically naming China.
A US official told Reuters that countries “can’t have it both ways”. It would be difficult for a country to be a trusted partner in one technology ecosystem while joining a Chinese initiative advancing a competing AI vision.
Chinese President Xi Jinping launched the World Artificial Intelligence Cooperation Organization in July, promoting China’s open-weight AI technology as a challenge to US influence in the sector.
The US aims to limit China’s access to resources needed for developing advanced AI systems with military and economic applications. Pax Silica encourages joint projects and export controls while reducing reliance on adversaries for critical minerals, AI models, and semiconductor chips.
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The technology rivalry has intensified as Chinese open-weight AI models have rapidly gained ground against proprietary systems developed by US companies including OpenAI and Anthropic.
China’s embassy in Washington said Beijing opposes politicising trade and technology issues, warning such actions would “stifle global AI advances”. The State Department declined to comment on the leaked draft.
It remains unclear when the US will send the letter or if its contents may change before issuance.
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The United States is preparing to inform dozens of countries that they must choose sides in the artificial intelligence race between Washington and Beijing. According to a US official and an internal draft reviewed by Reuters, countries joining China’s competing AI framework could be excluded from a US-led coalition.
The draft letter, prepared by the US State Department, is addressed to 35 countries that signed the US ‘AI Opportunity Statement’ in June. This group includes members of the non-binding Pax Silica framework and other countries seeking closer AI cooperation with Washington.
The US launched Pax Silica last year to secure supply chains for AI models, semiconductors, and critical minerals amid growing technology competition with China. About two dozen countries have joined the initiative, including Japan, Australia, South Korea, and Kazakhstan, a major potential source of critical minerals.
Kazakhstan has also joined a rival Chinese initiative, making it the only country known to be part of both frameworks. This has raised concerns in Washington.
The draft letter states, “To be part of everything is to be part of nothing,” urging countries to “choose deliberately” on AI. It says membership in Pax Silica cannot be held alongside “duplicative initiatives” with conflicting expectations, without specifically naming China.
A US official told Reuters that countries “can’t have it both ways”. It would be difficult for a country to be a trusted partner in one technology ecosystem while joining a Chinese initiative advancing a competing AI vision.
Chinese President Xi Jinping launched the World Artificial Intelligence Cooperation Organization in July, promoting China’s open-weight AI technology as a challenge to US influence in the sector.
The US aims to limit China’s access to resources needed for developing advanced AI systems with military and economic applications. Pax Silica encourages joint projects and export controls while reducing reliance on adversaries for critical minerals, AI models, and semiconductor chips.
MUST READ | AI boom's hidden bill: Big Tech's spending hits $165 billion as free cash flow shrinks
The technology rivalry has intensified as Chinese open-weight AI models have rapidly gained ground against proprietary systems developed by US companies including OpenAI and Anthropic.
China’s embassy in Washington said Beijing opposes politicising trade and technology issues, warning such actions would “stifle global AI advances”. The State Department declined to comment on the leaked draft.
It remains unclear when the US will send the letter or if its contents may change before issuance.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine