How China is quietly gaining from US AI boom despite trade tensions
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China is indirectly benefiting from the US artificial intelligence spending surge, despite trade tensions and restrictions on Chinese technology firms. The US is investing nearly $2 trillion in data center projects, driving up imports of electronic goods from Asia, including China, which remains embedded in regional supply chains.
The US is investing nearly $2 trillion in data center projects, driving up imports of electronic goods from Asia. China is indirectly benefiting from this surge, despite trade tensions. Chinese exports to other Asian economies have increased, helping it stay relevant in the ecosystem. Components like printed circuit boards and AI server assemblies are contributing to China's gains. However, analysts say China's position in the supply chain remains relatively downstream, limiting its benefits. The US continues to tighten restrictions on Chinese technology firms, which may impact China's long-term gains.
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