White House AI czar: China now just 2 years behind US chip design

White House AI and crypto czar David Sacks warned that China has become highly skilled at circumventing US semiconductor export controls and is now only about two years behind American chip design capabilities. His comments highlight growing concerns about the effectiveness of current trade restrictions and China’s rapid technological advancement despite ongoing sanctions.

What you should know: Sacks pointed to specific examples demonstrating China’s ability to work around US restrictions and continue advancing its technology sector.

• Huawei Technologies, the Chinese telecommunications giant hit with extensive US export controls, is rapidly closing the gap with international competitors.
• DeepSeek’s breakthrough AI model earlier this year proved that Chinese companies can still achieve significant technological progress even under current export restrictions.
• The timeline suggests China’s semiconductor design capabilities are advancing faster than many US officials previously estimated.

Why this matters: The assessment suggests that current US export controls may be less effective than intended at slowing China’s technological development, particularly in critical areas like AI and semiconductors.

• If China is indeed only two years behind in semiconductor design, it could significantly reduce US technological advantages in areas crucial for national security and economic competitiveness.
• The rapid pace of Chinese advancement, exemplified by companies like Huawei and DeepSeek, indicates that export restrictions alone may not be sufficient to maintain US technological leadership.

The big picture: Sacks’ warning comes as US policymakers continue to debate the effectiveness of export controls as a tool for maintaining technological superiority over strategic competitors.

• The comments reflect ongoing tensions between the US and China over technology transfer and intellectual property, particularly in semiconductors and artificial intelligence.
• His role as both crypto and AI czar positions him at the center of discussions about how emerging technologies intersect with national security concerns.