China erases U.S. lead in AI race

China has rapidly closed the AI technology gap with the U.S., emerging as a counterweight despite U.S. restrictions on advanced chips. Chinese startups like Moonshot AI, DeepSeek, Z.ai, and Alibaba have released competitive models. The U.S. has accused China of industrial-scale distillation, extracting capabilities from American models, which China denies. Both countries express concerns about AI risks, with China's security minister warning of threats. The debate intensifies ahead of Xi Jinping's expected visit to Washington.