China’s Growing AI Power Sparks Fears Over U.S. Monopoly

China’s rapid progress in artificial intelligence is challenging long-standing U.S. dominance in the sector, raising concerns about America’s perceived technology monopoly, analysts say.

Rory Green of TS Lombard told CNBC that China’s tech shock is only beginning, as Beijing moves quickly up the value chain in AI, electric vehicles, and advanced manufacturing.

China's tech shock threatens the U.S. AI monopoly and is 'just getting started' https://t.co/QEHPRpZDIk

— CNBC (@CNBC) February 16, 2026

He said China combines cutting-edge technology with low production costs and a powerful supply chain, backed by heavy state investment. Beijing launched a national AI fund worth more than $8 billion last year and is expanding its “AI+” initiative across the economy.

China is also narrowing the gap in AI hardware, using domestic chips from Huawei and cheaper energy to scale computing power, challenging U.S. leaders like Nvidia.

Meanwhile, heavy AI spending by U.S. firms such as Amazon and Microsoft has raised investor concerns about returns, fueling broader doubts about long-term U.S. tech leadership.

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