Navigating Turbulence: The Challenge of Inclusive Innovation in the U.S.-China AI Race

2026-04-09

AI Summary

This study examines how geopolitical competition shapes inclusive innovation in artificial intelligence through divergent legal frameworks, with a focus on regulatory discrepancies between China and the United States in data privacy, intellectual property, and export controls. Employing comparative legal and policy analysis, the research systematically investigates how each country’s legal infrastructure differentially structures its AI innovation ecosystem. The findings reveal that intensifying technological rivalry is fostering the emergence of exclusionary global governance norms. China holds potential advantages in access to training data and intellectual property protection, whereas the United States leverages its control over critical resources—particularly semiconductors and AI model exports—to dominate technical standard-setting and shape trajectories of innovation.

Technology Category

• Philosophy and Ethics of AI: AI & Law, Justice, Regulation & Governance
• Humans and AI: AI for Accessibility
• Computer Vision: Remote Sensing / Geospatial AI

Application Category

• Security and Privacy: Security and privacy of machine learning and AI applications
• Economics, Online Markets and Human Computation: Uses of LLMs and GenAI for marketplace design, bidding, and strategic interactions
• Responsible Web: Technology governance, policy, and regulations

Abstract

This chapter examines the impact of the geopolitical rivalry between the United States and China on the prospects for inclusive innovation in artificial intelligence (AI) development. We explore three critical aspects of the American and Chinese legal infrastructure that significantly impact AI innovation: data privacy, intellectual property (IP rights), and export restrictions. Through this comparative analysis, we argue that, while China's legal environment may offer certain advantage in terms of access to training data and IP protection, the United States maintains superior resources by enforcing strict export controls on semiconductor chips, AI models, as well as outbound investments in these areas. This nuanced examination helps illuminate how each country's legal framework could influence the ultimate trajectory of AI race and how the technological rivalry has led to exclusionary rulemaking on a global scale.

Problem

• inclusive innovation
• AI race
• geopolitical rivalry
• legal infrastructure
• export restrictions

Innovation

• inclusive innovation
• geopolitical rivalry
• legal infrastructure
• export controls
• AI governance