U.S. Technological Containment and the Rise of China's Open AI Ecosystem

[2606.15999] U.S. Technological Containment and the Rise of China's Open AI Ecosystem Skip to main content Search Submit Donate Log in Search arXiv Press Enter to search · Advanced search Economics > General Economics arXiv:2606.15999 (econ) [Submitted on 14 Jun 2026 ( v1 ), last revised 15 Aug 2026 (this version, v2)] Title: U.S. Technological Containment and the Rise of China's Open AI Ecosystem Authors: Wang Jin , Nadav Kunievsky , Bowen Lou , Tianshu Sun , James Evans View a PDF of the paper titled U.S. Technological Containment and the Rise of China's Open AI Ecosystem, by Wang Jin and 4 other authors View PDF Abstract: Over the past decade, U.S. policies have increasingly aimed to preserve artificial intelligence (AI) leadership by promoting domestic free-market policies while controlling global technological chokepoints, particularly advanced semiconductors and computational infrastructure. These measures raised the cost of Chinese AI development, but they also increased the strategic value of open and locally adaptable AI systems. Before raising export controls on high-performance chips, both the U.S. and China promoted policies that included support for open-source AI. During the period following major U.S. export-control shocks, China increasingly embedded open-source AI into national technology strategy through proposed ecosystem building, standards coordination, and resilience-oriented deployment. Moreover, Chinese developers increased engagement with open-source large language model repositories substantially more than U.S. developers did, consistent with a shift toward open infrastructure under geopolitical constraints. Subsequently, Chinese-origin open models diffused widely through open-source communities and scientific research. Even though such models remained largely absent from U.S. patent disclosures, American commercial entities use them in open-access research, suggesting their undermeasured importance within the foundation of U.S. commercial activity. These findings suggest that technological containment can shape not only the direction of AI development, but also the ecosystems through which AI is developed, improved, and diffused. Subjects: General Economics (econ.GN) ; Computers and Society (cs.CY) Cite as: arXiv:2606.15999 [econ.GN] (or arXiv:2606.15999v2 [econ.GN] for this version) https://doi.org/10.48550/arXiv.2606.15999 Focus to learn more arXiv-issued DOI via DataCite Submission history From: Nadav Kunievsky [ view email ] [v1] Sun, 14 Jun 2026 19:55:20 UTC (1,456 KB) [v2] Sat, 15 Aug 2026 01:24:07 UTC (3,408 KB) Full-text links: Access Paper: View a PDF of the paper titled U.S. Technological Containment and the Rise of China's Open AI Ecosystem, by Wang Jin and 4 other authors View PDF view license Current browse context: econ.GN < prev | next > new | recent | 2026-06 Change to browse by: cs cs.CY econ q-fin q-fin.EC References & Citations NASA ADS Google Scholar Semantic Scholar export BibTeX citation Loading... BibTeX formatted citation × loading... 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