China Decode: The U.S. vs China AI Battle Is Getting Ugly

The race for global AI supremacy is accelerating—and getting messier. Alice Han and James Kynge break down the escalating tensions between the U.S. and China as accusations of AI model “distillation” and intellectual theft collide with China’s own rapid breakthroughs, including DeepSeek’s latest powerful new model.

But the competition isn’t just happening in code. While Washington warns of industrial-scale AI copying, Wall Street is quietly increasing exposure to China through record renminbi borrowing and offshore “dim sum” bonds—suggesting a deeper financial realignment underway beneath the geopolitical friction.

And inside China, a very different story is unfolding: a rising trend of “pretend-to-work” offices, where young people are paying just to simulate employment amid growing youth unemployment and economic pressure.

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