Much of the current AI discourse in the U.S. focuses on surpassing China in technology advancement. While the U.S. targets cutting-edge AI technologies, China dominates the global market. Many countries seek affordable and effective solutions rather than the latest innovations.
China’s strategy involves distributing cost-effective models globally, which could lead to long-term challenges for the U.S. The competition will influence which technology supports infrastructure, healthcare, education, and government services globally. As China forges connections in Africa, Asia, and Latin America, the U.S. finds it increasingly difficult to enter these markets.
Chinese technology, while accessible, poses security risks. Unlike U.S. technology, it may not provide adequate protection, exposing nations to threats. Additionally, Chinese tech often aids government surveillance of citizens.
China focuses on open-weight models, making its technology accessible for adoption. Whereas many U.S. alternatives are tied to company-controlled services, Chinese models such as DeepSeek and those from Alibaba are available for download and adaptation.
Huawei, for instance, expands its influence across the Global South. The company extended AI services to nine more countries, including Brazil and South Africa, offering DeepSeek access through its cloud network. In Egypt, Huawei supports startups with cloud credits and training, reducing entry costs and promoting local adaptation to Chinese tech.
Microsoft’s reports show DeepSeek’s usage in Africa doubling or quadrupling compared to other regions in 2025, attributing this to its free access and strategic partnerships. Chinese cloud providers continue expanding, especially in emerging markets. For example, they captured significant shares of the data center market in Latin America and Southeast Asia.
This expansion allows Beijing to wield influence, as switching providers could be costly and destabilizing for countries. Countries reliant on Chinese tech might resist challenging Beijing, with purchasing decisions potentially driving political alignments.
There is a risk of information distortion. U.S. tests indicate DeepSeek models parrot misleading narratives compared to American models. As AI becomes a common tool for understanding history and news, these biases might amplify China’s worldview.
American companies risk losing out on future software, equipment, and services sales, impacting their viability and closing opportunities for U.S. workers. The Chinese government emphasizes Global South partnerships through the Digital Silk Road and supports Chinese firms with financing.
Lack of a unified U.S. strategy, including the absence of the U.S. Agency for International Development, hinders progress in the Global South. Affordable AI access should be central to U.S. efforts. Promotion of American AI technology and easing export financing are steps forward, but insufficient in comparison to China’s outreach.
To compete, the U.S. must boost funding for countries interested in American technology, support user training, assist in developing local language tools, and collaborate to address specific problems. China leads in the Global South technology race, and swift U.S. action is crucial to prevent losing global AI influence, which would have major implications for U.S. security and technological leadership.
Orit Frenkel is CEO of the American Leadership Initiative. Copyright 2026 Nexstar Media Inc. All rights reserved.
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