The rapid developments in Artificial Intelligence (AI) present a multitude of challenges that demand regulatory attention. And if the U.S. and China can’t reconcile some of their differences on AI regulation and safety, the whole world will suffer.

US President Joe Biden’s recent executive order restricting American investments in Chinese semiconductors, microelectronics, quantum information technology, and artificial intelligence marks another escalation in the Sino-American tech war. In the context of the two superpowers’ intensifying geopolitical rivalry, the chances that this conflict will be resolved anytime soon are virtually zero, to the detriment of the global economy.

New investment restrictions from the Biden administration will serve to stimulate China’s research and development efforts. In the long run, the measures could also weaken the United States’ dominant position in the global high-tech industry by stimulating substitution in the industrial chain.

An executive order issued recently by U.S. President Joe Biden to restrict outbound investment will have many unintended negative consequences. Other countries will need a healthy dose of vigilance regarding America’s duality and changeability, as the U.S. moral position is undermined.

In his now-classic 2018 book, AI Superpowers, Kai-Fu Lee threw down the gauntlet in arguing that China poses a growing technological threat to the United States. When Lee gave a guest lecture to my “Next China” class at Yale in late 2019, my students were enthralled by his provocative case: America was about to lose its first-mover advantage in discovery (the expertise of AI’s algorithms) to China’s advantage in implementation (big-data-driven applications).

Artificial intelligence may transform human society for the better by releasing people from repetitive work and improving the speed of innovation. But no one is immune from its potential negative social impacts and security threats. Some worry about becoming its victims.

Chinese chipmakers have remained surprisingly resilient despite U.S. semiconductor export controls. By redirecting focus towards legacy chip production, stockpiling restricted foreign chips, government support, and open-source RISC-V chip design architecture, China’s semiconductor industry may survive Washington’s export control campaign.

While the United States is focused on competition with China, when it comes to artificial intelligence cooperation is the better choice. In applications such as retail, finance, manufacturing, self-driving cars and telemedicine, the two countries can both win.

A ban on the export of advanced chip manufacturing equipment to China by the Netherlands and Japan, imposes sweeping restrictions. The ban aims to contain China’s semiconductor industry and further widen America’s tech lead. But it’s not going to work.

Technology is ground zero in the conflict between the United States and China. For the American hegemon, it is about the leading edge of geostrategic power and the means for sustained prosperity. For China, it holds the key to the indigenous innovation required of a rising power. The tech war now underway between the two superpowers could well be the defining struggle of the twenty-first century.