US-China economic rivalry transforming into a battle for leverage

The reported remote access by Chinese tech giants like Alibaba and Tencent to Nvidia GB300 chips via data centers in Thailand, Malaysia, and Japan shows the limits of US export controls. Physical restrictions on chip movement do not fully prevent access to advanced computing power, as global technology networks offer alternative pathways. This dynamic forces a re-evaluation of how effective current US policies are in containing China's AI development. China's rapid progress in AI, as noted by the 2026 Stanford AI Index, indicates a narrowing performance gap with the US. While America leads in top-tier AI models, China excels in AI publication volume and patent output. This suggests China's growing capacity for indigenous AI development, which blunts US efforts to exert leverage through technology restrictions. The White House's "The Great Transshipment Scam" report also points to the adaptability of China-linked supply chains, with goods routed through over 40 countries to evade tariffs. For Asia, this means continued strategic importance as a hub for data centers and a conduit for technology access, even as geopolitical tensions persist. The region will remain central to both US and Chinese tech strategies.