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Trump administration outlines strategy to beat China in critical AI race

Providing an update on where the U.S. stands in an infrastructure race with China, Trump administration artificial intelligence (AI) and crypto czar David Sacks cautioned that America isn’t guaranteed to win.

“The competition with China is fierce. China is a significant competitor in AI,” Sacks said on “Mornings with Maria” Friday.

“But China is doing their best to innovate, to work around the restrictions we try to place on them,” he continued. “And so they are a significant competitor, and we, basically, can’t get complacent here.”

Trump’s White House has prioritized an AI action plan that brings hundreds of billions of dollars in investments through programs like Stargate, while also opening conversations about deregulation in the cryptocurrency space.

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However, concerns exist over America’s ability to hedge against the quickly-evolving AI capabilities in China, which allegedly benefit from the adversary’s authoritarian government, a preexisting Belt and Road initiative and regulatory and copyright arbitration.

Photo of China flag on phone with US flag in background

Trump AI and crypto czar David Sacks weighed competition with China during “Mornings with Maria” on Friday, June 20, 2025. (Getty Images)

“To the chips, the hardware, to the equipment that makes the semiconductors, the U.S. has a more significant lead there. I think Nvidia is something like one-and-a-half or two years ahead of the Chinese champion, which is Huawei,” Sacks assured.

“We have to remain paranoid about China,” he added, “because they are doing everything they can to catch up… we don’t want China to catch up.”

Sacks advocated for export controls around China’s “leading-edge” AI products and semiconductor chips, and claimed the administration is prioritizing two objectives.

“I think there are good arguments for not selling China our leading-edge semiconductors. But at the same time, we want American technology to dominate the globe… We want American technologies to be the standard,” he said. “We want our market share to be highest. And if we restrict the sale of American technology to the rest of the world, I’m talking about outside China, then I think we’ll regret it.”

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“If we don’t saturate the global demand while we have this market to ourselves, we’re going to be kicking ourselves about it,” Sacks noted. “So I think we need to have a more nuanced approach here on export controls. I think restricting China makes sense. But I think we want to make sure that we win the rest of the world.”

He concluded: “On the one hand, we’re telling the world that AI is critical, even existential, for the development of their economies. But then, on the other hand, our government is making it harder… We’ve changed this now under President Trump… and we want to encourage American exports to be sure we should name our security requirements… We need to make sure that American technology dominates the world.”

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