Just 2 weeks ago, US Technology Adviser Michael Kratsios gathered top US Technology executives at a 2-day meeting in North Carolina to promote what was called the “Carolina Principles” a call
Just 2 weeks ago, US Technology Adviser Michael Kratsios gathered top US Technology executives at a 2-day meeting in North Carolina to promote what was called the “Carolina Principles” a call to advocate that ‘new AI rules should only be created where existing laws do not address emerging risks.’ The plan was for the US to present this at the forthcoming G20 summit in Miami, Florida, this December.
Just after that, Anthropic CEO Dario Amodei made a public call on Saturday to slow the pace at which builders are improving the capabilities of AI models, saying new guardrails are necessary to keep safety in check.
China has pushed back against Amodei’s call to slow the development of advanced AI calling it “fearmongering”. China’s Foreign Ministry spokesman Guo Jiakun said at a regular briefing in Beijing on Monday that
“fearmongering, confrontation and vicious competition will only disrupt the process of global AI governance and serve the interests of no one.”
Other countries do not want to be forced to choose
Many countries are trying to avoid becoming too dependent on either China or the US, especially as access to advanced chips, cloud infrastructure and AI models becomes tied to national security. Beijing has repeatedly warned against creating separate technology blocs, while European officials have also pushed for greater control over the continent’s own AI capabilities.
Europe has much less AI computing power than the US, leaving European companies reliant on foreign infrastructure while Brussels works on its own AI rules. Other countries, including those in the Gulf (UAE, Saudi Arabia and Qatar) and Asia (Singapore, Malaysia, India), are also investing in domestic data centers and AI models. The result could be a more fragmented global market, where countries build their own systems and choose technology partners based on strategic interests rather than simply using the most advanced option available.
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What happens if the US and China cannot agree?
If the US and China develop different rules for how powerful AI systems can be used, this could affect everything from autonomous AI agents and cybersecurity to military applications and the use of AI in critical infrastructure.
The United Nations has already started a Global Dialogue on AI Governance as countries look for ways to coordinate rules around the technology. Researchers have also identified a growing group of “AI middle powers” that are developing their own policies because the most advanced systems are concentrated in the US and China.
For Washington and Beijing, a more realistic option would be agreeing on specific limits around the highest-risk uses of AI while continuing to compete commercially. Brookings fellow Ryan Hass has argued that cooperation is possible without requiring either side to abandon its strategic interests.
If that minimum cooperation fails, the consequences could extend well beyond the two countries. AI systems developed under different safety standards could spread across borders, while governments would have different rules for dealing with the same risks.
Investors debate the US-China AI standoff
Sahil argued that recent trade and geopolitical tensions have exposed limits to America’s ability to maintain its technological dominance through economic pressure. Against that backdrop, he said China is unlikely to accept US AI restrictions and that any public suggestion otherwise would be misleading.
That skepticism was supported by TBK, who argued that a global slowdown in AI development is unlikely to happen. He said the technology has already spread too far for governments to reverse its progress, making a coordinated pause increasingly unrealistic.
Voltage took the argument further, saying China has little reason to slow its AI development because of its progress with open-source models. He also argued that some of the risks being blamed on AI are being created by how American companies train their systems, rather than by China’s refusal to accept calls for a slowdown.
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