But AI is different.
Trade agreements can be renegotiated. Tariffs can be raised or lowered. Semiconductor restrictions can be changed.
AI is becoming a general-purpose technology that can transform military power, manufacturing, cyberwarfare, scientific research, and the global economy simultaneously.
That makes the Trump-Xi meeting, in a very important sense, an AI summit.
The old assumptions about China's subordinate position in AI were simple: America had the technology, and China was trying to catch up.
That assumption is dangerously outdated.
Stanford's 2026 AI Index found that U.S. and Chinese frontier AI models have traded the lead several times since early 2025. By March 2026, the leading U.S. model held only a 2.7 percent advantage over the leading Chinese model on the benchmark measured by Stanford.
The United States still has major advantages. It produces more top-tier models, attracts vastly more private AI investment, and remains strong in advanced chips, computing infrastructure, and leading AI companies. U.S. private AI investment reached $285.9 billion in 2025, compared to $12.4 billion in China.
But China has other advantages. It leads the world in AI publications, citations, patent output, and industrial robot installations.
That last advantage is particularly important. China installed roughly 295,000 industrial robots in 2024, accounting for 54 percent of worldwide installations. The significance is not simply that China has more robots, but that it has enormous manufacturing capacity to deploy AI-powered machines.
That's a critical factor that can't be overstated. AI becomes much more powerful when it is connected to factories, warehouses, vehicles, supply chains, and physical machines.
China is already building that connection.
The next phase of AI may not be dominated by chatbots, but rather by machines that can see, reason, move, and act.
China has built the world's largest industrial-robot deployment base and is rapidly expanding into humanoid robotics.
Chinese companies are also pushing open AI models that can be adapted and deployed cheaply. A 2026 U.S.-China Economic and Security Review Commission analysis found that Chinese laboratories have increasingly embraced open-source models and that Alibaba's Qwen ecosystem had more than 100,000 derivatives on Hugging Face.
This creates a powerful and escalating feedback loop. More AI creates better robots; more robots generate more real-world data; more data improves AI; better AI makes robots more capable; and more capable robots create more demand for AI.
That is where China's unrivaled manufacturing scale becomes a strategic advantage.