On July 15th, local time, Kevin Warsh, chairman of the Federal Reserve Committee in the United States, again regarded China as a major competitor in the field of artificial intelligence (AI) during a hearing before the Senate Banking Committee. He stated that China and the United States are engaged in a "proxy war" over control of AI, and urged U.S. financial institutions to be aware of the potential security risks associated with AI.
According to the American financial media CFO Dive, this is the first time Wach has testified before Congress since he was appointed as the Chair of the Federal Reserve in May. During the hearing, he stated that the United States is still at the forefront of AI technology, but 'must not be complacent.' He said that China is the U.S.'s 'pacing power' in the field of AI. Over the next decade, the competition between the two countries in this area will essentially be a battle for global influence and dominance.
Woosh also emphasized that the Federal Reserve is urging regulated banks to be vigilant against so-called “rival countries” using AI to launch cyberattacks. He revealed that since taking office seven weeks ago, he has made assessing security vulnerabilities caused by AI one of his key tasks. A specialized working group has been established within the Federal Reserve to study the impact of AI on financial stability, prices, and employment.
However, Wash also acknowledged that the development of AI would also bring tremendous opportunities to the U.S. economy. He stated that AI could be the most transformative technological change that has affected the United States and even the global economy in his adult life. He also claimed that the United States holds “the most advantageous position globally” and could lead the way in using AI to increase productivity, thereby benefiting American businesses and workers.
In fact, Wash has repeatedly talked about the so-called ‘China Challenge’ in recent years. As early as 2022, he wrote in the Wall Street Journal that the development of China’s digital yuan could threaten the international dominance of the US dollar, and called for the United States to introduce a ‘digital dollar’ for wholesale payments in order to maintain US hegemony.
In recent years, with the rapid development of China's AI industry, the US government has continuously increased restrictions on chip exports to China and has elevated the competition in artificial intelligence to a national strategic level. At the same time, discussions in the US political and business circles about "China being in the process of catching up and even challenging the US’ leading position in AI" are becoming increasingly intense.
