I like the part where the reason the US keeps allowing it is that "if we don't, China will", as if China has access to the same flood of data that US FAANG companies and contenders like Zoom have access to every second of every day.
Sure, at the government level it has access to the same data as everyone else, but that firewall's still there, can't have an AI trained on data that might give a more worldly view on matters the party doesn't want citizens exposed to. A Chinese AI will be pretty useless for western audiences, so best they can do is make the hardware.
China might not be as successful as the west(yet) but they have their own ecosystem and have alternatives for most tech products.
All the tech companies in China are practically under the control of the party. China also has a billion+ people, even the market is smaller than the west, I think they will manage.
Not to mention the difference in privacy laws and a higher number of stem grads to throw at the problem.
So we agree: that was my point. China is not a competitor for western markets, meaning the argument that "If we don't do it, China will" is fucking ridiculous, as China doesn't have access to the data necessary to make things that WORK for the western market.
A lot of western data is public, people in China aren't aliens compared to those in the west, there are only small cultural differences so chinese data in itself is usable for many western requirements.
Combine the public western data and private chinese data, and it should be enough for them to give the west a run for its money if they decide to slow/stop. Not to mention that chinese apps like tiktok are used very widely in the west, and coorps like Tencent have a tentacle wrapped around hundreds of western coorps.
That seems an intentionally blind take on the matter. That's like saying that because you've seen a kid shoplift a pack of gum at a gas station, an organized crime outfit stealing entire ATMs from every gas station in a 200 mile radius isn't anything new.