US pushes AI solutions in 21 APEC nations after Trump-Xi talks

The United States is actively promoting its artificial intelligence options to all 21 member economies of the Asia-Pacific Economic Cooperation (APEC) forum, signaling a new phase in its tech rivalry with China following a recent high-level meeting between President Trump and President Xi.

"We're very active in promoting U.S. AI options and solutions," Casey K. Mace, a senior official for APEC and economic policy at the State Department, told CNBC on Friday on the sidelines of an APEC trade ministers' meeting in Suzhou, China.

The push includes workshops by U.S. tech companies at an upcoming APEC "digital week" in Chengdu. This diplomatic and commercial offensive follows a period of escalating U.S. restrictions on China's access to advanced American chips and a high-stakes meeting between the two countries' leaders, after which they agreed to begin discussions on the safe development of AI.

The initiative puts U.S. technology giants in a precarious position, balancing opportunities in the vast Asian market against a complex web of export controls. For companies like AMD, which still derives about 20% of its revenue from China, navigating this landscape is critical for investors gauging geopolitical risk exposure.

A High-Stakes Balancing Act

U.S. chipmakers are already performing a difficult balancing act. AMD CEO Lisa Su recently confirmed that China, a market she characterized as “very important,” accounts for about 20% of the company’s revenue, down from 24% in 2024. The drop reflects the bite of U.S. export controls, which create a regulatory maze for chip sales.

For instance, advanced accelerators like AMD’s MI325X now require a case-by-case license for export to China, while other products like the MI308 are permitted under a revenue-sharing agreement with the U.S. government. This patchwork of regulations forces companies to lean on non-restricted segments like PC and gaming processors to maintain their footprint in China, keeping distribution channels open while their most powerful products are kept behind a wall of bureaucracy.

Competitive Landscape Heats Up

While the U.S. promotes its "best in class" tech, it faces a determined push from Chinese competitors. "It will compete with Chinese hyperscalers and Chinese AI labs that are attempting to do exactly the same," said Ryan Fedasiuk, a fellow at the American Enterprise Institute. This is compounded by warnings from executives like Nvidia CEO Jensen Huang that China already possesses a formidable chip-making capability, suggesting U.S. bans may not be as debilitating as intended.

The U.S. strategy appears to be a two-pronged approach: restrict China's access to the most advanced technology while simultaneously embedding American AI solutions across the broader Asian market. The focus of recent APEC working-level conversations on U.S. AI in food traceability and biotech underscores this push into practical, non-military applications.

For investors, the situation presents a dual-edged risk. Further restrictions could shrink the China-derived revenue that companies like AMD and Nvidia depend on, effectively ceding market share to domestic Chinese firms. Conversely, any policy relaxation could unlock significant growth. The key variable is no longer just market dynamics, but the shifting winds of geopolitics in the U.S.-China relationship.

This article is for informational purposes only and does not constitute investment advice.