As the US and China race to arm their militaries with artificial intelligence, drones, and biotechnology, a potential conflict over Taiwan is looming as the ultimate test of technological supremacy.
The AI Arms Race: A New Era of Warfare
The United States and China are locked in a high-stakes race to incorporate artificial intelligence into their military systems. The potential conflict over Taiwan is seen as the first real test of which nation holds the technological edge. The competition for AI supremacy is reshaping global security, military doctrine, and the future of warfare, with both nations leveraging their unique strengths while facing distinct challenges. The US has traditionally led in foundational AI research, spurred by an innovative private sector and world-class universities. However, China’s state-led approach allows for rapid AI integration across civilian and military sectors, thanks to its centralized governance system.
The US imposed export controls on advanced semiconductors and AI chips to limit China’s military AI capabilities, with China responding by accelerating domestic semiconductor development. Both nations have poured billions into science and technology, with the US Chips and Science Act allocating $52 billion to boost domestic chip production and China investing over $55 billion in similar initiatives. The Indo-Pacific region, particularly Taiwan, is viewed by US defense planners as a likely flashpoint for future conflicts, prompting a shift in military focus to arm Taiwan and modernize US forces with AI and autonomous systems.
Key Stakeholders and Their Roles
The US Department of Defense is focused on modernizing military capabilities with AI, drones, and cyber technology to maintain a global edge. The Chinese People’s Liberation Army is rapidly adopting AI and integrating biotechnology into its strategies. The US tech sector, including giants like Google and Microsoft, drives AI innovation and dual-use technology, collaborating with the military. Meanwhile, Chinese tech giants like Baidu and Huawei are implementing state-directed AI projects, fostering military-civil fusion. The Taiwanese government and military seek US support to modernize their defenses in preparation for an AI-enabled conflict.
Mosquito recon drone for the PLA.
Our military can leverage China’s advanced consumer electronics sector, to rapidly prototype and test new ideas efficiently.
When a solution to a problem is found, then rapid mass production.
This is the core essence of military-civil fusion.… pic.twitter.com/ZBC5GkeAmh
— Zhao DaShuai 东北进修🇨🇳 (@zhao_dashuai) June 21, 2025
The US Congress and regulatory bodies play a crucial role in setting export controls and funding R&D while debating ethical and legal frameworks. The Chinese Communist Party directs national AI strategy, focusing on military-civil fusion. International allies such as Japan, Australia, and the EU collaborate with the US on tech standards and defense. AI ethics and human rights groups advocate for responsible AI use, warning of autonomy, gene editing, and surveillance risks.
Current Developments and Future Implications
The US Army is undergoing a $36 billion AI-driven modernization, aiming to equip each combat division with around 1,000 drones by 2026. China is reportedly experimenting with gene-edited soldiers and integrating AI with biotechnology in military hospitals, raising ethical concerns. Both nations are conducting AI-enhanced war games and cyber-espionage exercises to simulate future conflicts. Recent statements by US defense officials emphasize the necessity of “human-in-the-loop” controls for lethal AI, while warning that China may not adopt similar ethical constraints.
AI arms race: US and China weaponize drones, code and biotech for the next great war https://t.co/WE3OlAv13f
— Fox News (@FoxNews) July 23, 2025
In the short term, the rapid integration of AI and autonomous systems is transforming military structure and tactics. However, increased reliance on AI heightens cybersecurity risks and raises ethical dilemmas regarding gene editing and autonomous weapons. In the long term, the AI arms race could destabilize strategic stability and reshape global tech standards. The battle for AI and semiconductor supremacy will impact global supply chains, economic power, and technological leadership.
Expert Opinions and Diverse Viewpoints
Industry experts like Arnie Bellini emphasize the importance of AI in future warfare, stating that whoever has the best AI will dominate. Jack Burnham highlights China’s forward-leaning use of biotech in the military. Dr. Randall Hill stresses the need for interpretable AI and robust human-machine teaming in military training. US experts argue for ethical standards and human oversight in lethal AI applications, while Chinese scholars claim that China’s centralized approach enables faster technology deployment.
Some analysts warn that US regulatory overreach may inadvertently cede ground to China, which is embedding its AI in emerging markets. However, others highlight the US’s strengths in innovation and global alliances, suggesting that long-term leadership is possible with strategic investments. The Wilson Center, Recorded Future, and academic think tanks provide in-depth analyses of the US-China AI gap, funding trends, and military applications.