America needs to stop getting shocked by Chinese AI

Recent announcements of competitive Chinese AI models have triggered predictable alarm in the US tech sector and financial markets. The author argues that this shock is misplaced, as China's progress in AI has been well-documented and expected for years.
Why it matters
It highlights the geopolitical tension surrounding AI development and the potential for market volatility based on shifting perceptions of US technological dominance.
Last week, two Chinese AI companies unveiled models they say can credibly compete with the best systems from OpenAI and Anthropic. The response was swift and predictable. Markets wobbled, commentators declared Silicon Valley shooketh, and policymakers reached for the familiar language of arms races and wake-up calls.
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