S&P 5007,533.77▼0.5% Nasdaq25,881.95▼1.5% Dow52,552.97▼0.2% Russell 2K2,974.57▼0.1% 10-Yr4.57%+2bp VIX16.73+1.06 WTI$79.00▼0.8% Gold$3,981.40▼1.6% EUR/USD1.145▼0.2% BTC$66,280▲1.6% Nikkei68,752▲1.5%
At close · Thu, Jul 16, 2026
Daily Market Updates.

Global Markets

HomeGlobal MarketsTrade & TariffsUS-China AI model gap shrinks as new Chinese models em…

US-China AI model gap shrinks as new Chinese models emerge

SCMP Economy notes the latest updates have prompted Washington to reassess how tightly to control access to frontier US models and whether to restrict open-weight Chinese models at home.

For years, US and Chinese competition in artificial intelligence has been framed around a perceived gap in AI model capabilities, but recent developments are narrowing that lead, according to the South China Morning Post.

The outlet points to the late 2022 release of ChatGPT and October 2022 export controls on advanced semiconductor chips, which some experts at the time estimated put US tech ahead by three years or more. That view shifted as China improved models with an approach described as “fast following,” including the release of DeepSeek R1 early last year.

In the past few days, South China Morning Post reports the perceived US lead has shrunk from months to weeks after the arrival of new Chinese models from Moonshot AI and Alibaba Group Holding, which owns the South China Morning Post. The changes have surprised some in Washington.

The publication says US AI policy is now at a crossroads, with officials and experts weighing how tightly to control access to frontier US models, whether to restrict open-weight Chinese models domestically, and how to drive adoption of US AI technologies globally. Ryan Fedasiuk of the American Enterprise Institute is quoted as saying it is not clear what is actually happening in the race.

More like this

Sources

Get the close, explained.

One email every trading day: what moved, why it moved, and what's on deck tomorrow. Read in 3 minutes.

Free. Unsubscribe anytime.