Authored by James Gorrie via The Epoch Times,
When President Donald Trump and Chinese leader Xi Jinping meet at the White House on Sept. 24, the public agenda will be much larger than artificial intelligence (AI). Trade, semiconductors, rare earths, Taiwan, and other disputes will all be on the table.
But AI is different.
Trade agreements can be renegotiated. Tariffs can be raised or lowered. Semiconductor restrictions can be changed.
AI is becoming a general-purpose technology that can transform military power, manufacturing, cyberwarfare, scientific research, and the global economy simultaneously.
That makes the Trump-Xi meeting, in a very important sense, an AI summit.
China Is Much Closer Than Many Americans ThinkThe old assumptions about China's subordinate position in AI were simple: America had the technology, and China was trying to catch up.
That assumption is dangerously outdated.
Stanford's 2026 AI Index found that U.S. and Chinese frontier AI models have traded the lead several times since early 2025. By March 2026, the leading U.S. model held only a 2.7 percent advantage over the leading Chinese model on the benchmark measured by Stanford.
The United States still has major advantages. It produces more top-tier models, attracts vastly more private AI investment, and remains strong in advanced chips, computing infrastructure, and leading AI companies. U.S. private AI investment reached $285.9 billion in 2025, compared to $12.4 billion in China.
But China has other advantages. It leads the world in AI publications, citations, patent output, and industrial robot installations.
That last advantage is particularly important. China installed roughly 295,000 industrial robots in 2024, accounting for 54 percent of worldwide installations. The significance is not simply that China has more robots, but that it has enormous manufacturing capacity to deploy AI-powered machines.
That's a critical factor that can't be overstated. AI becomes much more powerful when it is connected to factories, warehouses, vehicles, supply chains, and physical machines.
China is already building that connection.
The Robotics Advantage Is Becoming an AI AdvantageThe next phase of AI may not be dominated by chatbots, but rather by machines that can see, reason, move, and act.
China has built the world's largest industrial-robot deployment base and is rapidly expanding into humanoid robotics.
Chinese companies are also pushing open AI models that can be adapted and deployed cheaply. A 2026 U.S.-China Economic and Security Review Commission analysis found that Chinese laboratories have increasingly embraced open-source models and that Alibaba's Qwen ecosystem had more than 100,000 derivatives on Hugging Face.
This creates a powerful and escalating feedback loop. More AI creates better robots; more robots generate more real-world data; more data improves AI; better AI makes robots more capable; and more capable robots create more demand for AI.
That is where China's unrivaled manufacturing scale becomes a strategic advantage.
What Does Xi Want?Xi has little reason to accept an agreement that simply slows China's technological development.
Beijing has repeatedly described AI as a strategic technology and has pursued greater technological self-reliance in response to American export controls.
China is also promoting its own model of global AI governance through Beijing's Global AI Governance Initiative. It calls for international cooperation on AI governance, safety standards, and technological development.
The fly in that ointment is that cooperation does not necessarily mean restraint.
China's current approach is closer to regulating the risks of AI while continuing to develop it aggressively. Reuters recently reported that Beijing is working on mandatory AI safety standards while simultaneously pushing rapid AI deployment and maintaining human oversight of advanced systems.
Xi Has Several Possible ObjectivesChina's top leader could seek greater access to advanced computing and semiconductor technology, seek limits on American restrictions against Chinese AI companies, and push for international rules that recognize China's role in setting AI standards.
He could seek agreement on specific dangers, such as AI-enabled cyberattacks, without accepting restrictions on China's broader AI development. The United States has already proposed discussions with China about monitoring AI-directed cyberattacks and other risks.
What Does Trump Want?The U.S. president's position presents a thorny contradiction.
He has emphasized the need for the United States to remain ahead of China in AI while resisting proposals that would significantly slow American development.
He's not alone in thinking that. House Speaker Mike Johnson similarly argued this week that an AI moratorium could surrender America's competitive advantage to China.
At the same time, Washington has obvious reasons to prevent AI from becoming an uncontrolled strategic weapon. Advanced AI could assist cyberattacks, accelerate biological research, automate influence operations, and potentially enable autonomous military systems.
The U.S. and Chinese officials have already begun discussing some of these risks, creating a potential basis for a bargain.
Trump could potentially offer China something Beijing wants - reduced technology restrictions, greater access to certain chips, reduced tariffs, investment opportunities, or other economic concessions - in exchange for verifiable limits on specific dangerous AI applications.
But there is an enormous problem.
Why Would China Or the US Slow Down?China has spent years trying to eliminate its dependence on American technology.
It would have little strategic incentive to surrender an advantage it believes could determine economic and military power for decades.
That makes a broad promise to "slow AI" difficult to trust.
Beijing could agree to safety standards, reporting requirements, or restrictions on particular applications while continuing to invest heavily in models, robotics, chips, and industrial deployment.
That's a predictable consequence of competing national interests. The United States would likely engage in the same practice. Thus, neither Washington nor Beijing wants to be the country that slows down while the other continues.
That is the central dilemma of AI.
The Real Issue Is Not Who Wins-Or Is It?The most important question may, therefore, not be whether America or China wins the AI race.
It is a question of whether either country can establish meaningful limits before increasingly autonomous systems become too difficult for governments - or their creators - to control.
That concern is no longer confined to science fiction.
AI researchers and technology executives are openly debating whether increasingly capable systems could eventually operate beyond effective human supervision. China is discussing the same loss-of-control problem, although its preferred solution is to rely on technical standards and state supervision rather than to slow development.
That's why everything else at the Trump-Xi summit may ultimately look smaller.
Yes, Taiwan matters; but so do trade, semiconductors, oil, and rare-earth elements.
But AI is becoming the technology underneath all of them. Whoever develops the most capable AI could gain advantages in every one of those areas.
In the AI race, that means winner-takes-all.
On the other hand, if AI becomes capable of independently designing better AI, controlling machines and making decisions at speeds humans cannot match, the question will change again.
It will no longer be simply which country controls AI, but rather whether humans still control the technology they created.
That's the issue Trump and Xi cannot afford to treat as just another item on the summit agenda.
Tyler Durden Fri, 09/18/2026 - 23:25Officials in Hennepin County, Minnesota, shut down a $2 million relief fund for businesses claiming to be affected by federal immigration enforcement after officials discovered widespread fraud among applicants, forcing them to end the program. The county board created the fund to help businesses "harmed" by Operation Metro Surge, the federal immigration enforcement operation that began in December 2025. Federal agents shot and killed two U.S. citizens, Renee Good and Alex Pretti, in Minneapolis in January, turning it into one of the most scrutinized immigration enforcement actions in the country.
Minnesota Gov. Tim Walz (D) Photo by Nicole Neri/Minnesota ReformerOf about 300 applications submitted, only 82 were deemed legitimate. Officials distributed only $500,000 before shutting the program down.
County officials found the problem ran deeper than a few opportunists padding their paperwork. Site visits revealed businesses listed on applications that did not exist. Investigators found the same AI-generated language pasted into dozens of unrelated applications with little variation.
Hennepin County Commissioner Jeff Lunde said the fraud reflected a broader breakdown. "The fact that people, after all this fraud, felt that they could apply and get away with it, I think it's a problem because clearly there's no fear out there," Lunde said. "Until we get it where people fear things, then they're gonna keep doing it."
Lunde described watching the numbers deteriorate in real time. "Then at a certain point we're like, 'OK, we're getting declining results on that.' And so we said it's time to stop the program. So we just stopped processing at that point," he said. He described the bulk of the applications as fraudulent outright, a flood of fabricated claims rather than a handful of bad actors slipping through the cracks.
Neither Hennepin County nor Walz's office responded to Fox News' requests for comment.
Independent journalist Nick Shirley kicked off Minnesota's fraud reckoning with a viral December video accusing several Somali-run daycare centers of billing the state for children who were never there, a claim he put at more than $110 million in fraudulent billing. The FBI previously dismantled a $250 million fraud scheme involving the nonprofit Feeding Our Future, which falsely claimed to have served millions of meals to children during the pandemic.
President Trump has spent much of the past year aiming his rhetoric about Minnesota's fraud problem at the state's Somali population, pointing to a string of prosecutions involving nonexistent or dormant businesses and nonprofits used to drain government aid programs.
Walz testified before the House Oversight and Government Reform Committee in Washington, D.C., on March 4, over the alleged misuse of federal funds across Minnesota's social services and Medicaid programs. Vice President JD Vance referred Walz and state Attorney General Keith Ellison to the National Fraud Enforcement Division earlier this year for a potential criminal investigation. Republicans argue the two enabled a fraud scandal that has metastasized across the state's welfare system. Walz and Ellison acknowledge that taxpayer money was misused but insist Republicans are inflating the scope for political gain.
That fraud division is now a Senate vote away from becoming a permanent fixture at the Department of Justice. The House passed the bill 352 to 72 on Wednesday, with every "no" vote coming from Democrats. More than 140 House Democrats, including Minority Leader Hakeem Jeffries, joined every Republican in support. Democrats voted to give permanent status to the very fraud division Vance had already used against their own governor, suggesting Minnesota's fraud problem is harder to spin from inside the caucus than from a podium in St. Paul.
Rep. Harriet Hageman (R-Wyo.) didn't hold back on what Minnesota has revealed. "What has come [out of Minnesota] over the last year, what has been exposed, is absolutely criminal in nature," Hageman said, adding that fraud in other Democrat-run cities and states is likely "higher by an order of magnitude."
Hennepin County just handed her something better than a talking point. A program built to comfort the supposed victims of immigration enforcement collapsed under the exact kind of fraud Minnesota's leadership spent a year dismissing as a right-wing conspiracy theory.
Tyler Durden Fri, 09/18/2026 - 23:00