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US-China relations
USDiplomacy

The AI race: US and China defence sectors emerge as key battlegrounds

As both military powers vie to integrate innovative technology first, the race is on to develop and fast-track the latest advancements

Reading Time:5 minutes
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Illustration: Lau Ka-kuen
Lucy Quagginin New York
US President Donald Trump wants to build his “Dream Military”. In January, he proposed setting military spending at US$1.5 trillion in 2027 while citing “very troubled and dangerous times”.

The move would increase the country’s defence budget by around 50 per cent amid growing concern at the Pentagon about China’s AI advancements.

As the United States and China race to develop the latest artificial intelligence, the use of AI technology in the military has become a battleground in its own right, with both powers vying to integrate the transformative technology first.
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China’s apparent AI has unsettled many people in Washington, analysts said.

“Regardless of how much the US actually increased defence spending, there’s definitely going to be more money for companies developing AI-related technologies,” said Samuel Bresnick, a research fellow at Georgetown University’s Centre for Security and Emerging Technology (CSET).

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Trump: Chinese AI start-up DeepSeek’s strong showing a ‘wake-up call’ for US tech sector

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Ukraine’s unexpectedly strong defence following Russia’s invasion and its innovative use of new technologies have also changed military doctrine and forced countries to rethink basic assumptions about military manufacturing.
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