The Trump administration outlines strategies to beat China with a critical AI race

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As the US provides an update on its infrastructure race position with China, Trump administration artificial intelligence (AI) and Crypto Czar David Sacks warned that America is not guaranteed to win.

“Competition with China is fierce. China is an important competitor for AI,” Sachs said on Friday, “The Morning with Maria.”

“But China is doing its best to innovate and avoid the restrictions we try to put on them,” he continued. “And they're important competitors and we basically can't be satisfied here.”

Trump's White House prioritized AI action plans that will bring hundreds of billions of dollars in investment through programs such as Stargate, and opened conversations about deregulation in the crypto space.

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However, there are concerns about America's ability to hedge against China's rapidly evolving AI capabilities. This is reportedly benefiting from enemy authoritarian governments, existing belt and road initiatives, regulations and copyright arbitration.

Photo of China flag on phone holding our flag in the background

Trump AI and Crypto Czar David Sacks weighed their competition with China during “Mornings With Maria” on Friday, June 20th, 2025. (Getty Images)

“The US has a more important lead there in chips, hardware and semiconductor making equipment. I think Nvidia is something a year or two years ago than the Chinese champion.

“We must remain paranoid about China,” he added. “Because they do everything they can to keep up.

Sacks advocated export controls for China's “front-the-line” AI products and semiconductor chips, claiming that management prioritizes two objectives.

“I think there's a good argument about not selling China, but at the same time, I want American technology to dominate the planet. I want American technology to be the norm,” he said. “We want our market share to be the highest and if we limit sales of American technology to other parts of the world, I think we'll regret it because we're talking about things outside of China.”

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“We're going to kick ourselves about it if we don't saturate global demand while we have this market for ourselves,” Sachs pointed out. “So I think we need to take a more nuanced approach here with export restrictions. I think it makes sense to limit China. But we want to make sure we win the rest of the world.”

“On the one hand, AI tells the world that AI is important to economic development, and even existential, is important, but on the other hand, the government is changing this under President Trump.

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