Current US concerns revolve around the potential for China to dominate the infrastructure and sovereign data of emerging nations in Africa and the Middle East through artificial intelligence technologies. This conflict has manifested itself directly in Egypt, which has become the first arena for direct commercial and technological confrontation between the two powers through a government tender to establish an AI data center. Egypt’s telecommunications infrastructure makes it a crucial hub for connectivity in the region, Africa, the Middle East, and the Global South as a whole, as international submarine cables pass through it, linking various parts of the world. Therefore, the administration of US President Donald Trump is moving urgently to counter the expansion of the Chinese company Huawei in the region, based on several security and geopolitical dimensions, including Washington’s major security and sovereignty concerns about the infiltration of sensitive sectors. Huawei has submitted a proposal to build data centers in Egypt specifically for military, security, and government surveillance systems. This raises Washington’s alarm about the possibility of Beijing gaining access to sensitive military and strategic data. In addition to American apprehension regarding Chinese comprehensive surveillance systems, the Chinese offer to Egypt (in partnership with the US-sanctioned company iFlyTek) includes technologies for identifying vehicles and individuals based on the national population database and civil registry. Washington fears this could transfer the Chinese surveillance state model to the region. Furthermore, Chinese offers to deploy artificial intelligence technology in Egypt and the region represent an attempt to circumvent sanctions and embargoes. China seeks to exploit Middle Eastern and African markets as outlets for exporting its advanced accelerators and chips, such as the Ascend 950 series.
This demonstrates China’s ability to provide infrastructure outside of China despite US restrictions on supply chains. This threatens American influence in the field of artificial intelligence in the Gulf region. Washington fears that China’s presence in Egypt (Africa’s second-largest economy) could be a gateway to jeopardizing massive US investments in the most profitable AI data centers in the UAE and Saudi Arabia. This coincides with the growing US promotion of American technology as respecting national sovereignty and offering significantly higher computing efficiency compared to Chinese chips, which are hampered by limited production capacity due to US and Western restrictions. These US restrictions on China’s access to advanced semiconductor manufacturing technologies, or their export from Washington to Beijing, hinder Huawei’s ability to produce large quantities of artificial intelligence chips.
The regional dimensions of US-China competition in artificial intelligence are evident in Africa and the Middle East. Washington recognizes that China’s success in Egypt will pave the way for China to expand its provision of low-cost AI solutions to African governments, granting Beijing long-term control over the continent’s telecommunications networks and cloud storage. This, in turn, creates a parallel technological ecosystem in the Middle East, entirely independent of US standards, weakening the US’s ability to impose future technological sanctions and reshaping the digital landscape. Therefore, Washington seeks to limit the spread of advanced Chinese technology. Here, the strategic competition between the United States and China in the field of artificial intelligence extends to Africa and the Middle East as a key arena for the transfer of technological influence and computing infrastructure. The manifestations of this US-China competition in infrastructure and data centers in Africa and the Middle East are evident through advanced Chinese offerings, where companies like Huawei Technologies are seeking to export smart chip systems, such as the Ascend series, and to build AI cloud data centers in pivotal countries like Egypt to test technology transfer outside of China.
For this reason, US-led alliances are actively working to hinder China’s efforts to transfer artificial intelligence (AI) technology and its applications beyond its borders. Washington is forming alliances with major technology companies to offer competing solutions, aiming to curb the spread of Chinese digital infrastructure and prevent Beijing from dominating emerging markets. The strategic and geopolitical dimensions of this US-China rivalry are highlighted by the cost and reach of AI models. China is therefore focusing on providing low-cost, high-efficiency AI models as the preferred option for countries in the region, Africa, and the Global South seeking digital development with minimal financial burden. Furthermore, the AI applications offered to Africa, the Middle East, and the Global South include advanced systems for security, surveillance, and digital sovereignty. Chinese infrastructure projects within the framework of the Belt and Road Initiative are often linked to governmental and security systems, making them a tool for consolidating political influence and shaping long-term technological standards, particularly in Africa, the Middle East, and several Asian countries.
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On the other hand, China and the United States recognize the seriousness of their competition in the field of artificial intelligence and its global applications. Therefore, following the summit between Presidents Donald Trump and Xi Jinping in May 2026, the two sides agreed to establish US-China government channels for dialogue on artificial intelligence, with talks scheduled for September 2026 to formalize this. These US-China AI talks are expected to address several issues beyond trade, including the risks associated with advanced AI models, how to manage their use in cybersecurity, and other sensitive areas. Here, formal government-to-government dialogue between the United States and China on artificial intelligence is conducted through direct government-to-government diplomatic channels, known as (Track 1 Diplomacy,) and informal negotiations, known as (Track 1.5 Diplomacy,) on regulating US-China competition in artificial intelligence have also officially resumed, under the auspices of the leaders of both countries. These informal negotiations take place through US-China think tanks and academics from both sides, supported by semi-formal channels, known as the informal diplomacy track or Track 1.5 diplomacy.
Here, we can learn about the official direct government channel for US-China negotiations on artificial intelligence, or the Track 1. This channel is for formulating official US-China rules and regulations in the field of artificial intelligence. Official and governmental channels are the primary means of negotiation, formulating joint policies, and mitigating cybersecurity and military risks. The US delegation in these talks with China regarding the regulation of AI use is led by US Treasury Secretary Scott Bisnett, appointed by the administration of President Donald Trump. On the Chinese side, the official government dialogue with the US on regulating the global use of AI is led by the Chinese Ministry of Foreign Affairs, in coordination with the Chinese Ministry of Finance (represented by Vice Minister Liao Min) and relevant technical bodies. A key development is the high-level talks scheduled for September 2026 to discuss security protocols, preceding the anticipated summit between Presidents Trump and Xi Jinping, scheduled for September 24, 2026. Meanwhile, the semi-official dialogue channels between China and the United States are being used to regulate the use of artificial intelligence and its applications through Track 1.5. This dialogue involves a number of academics, experts, and relevant think tanks from both sides. These channels are used to facilitate technical understanding and avoid political gridlock. The third China-US Track Dialogue was held in Beijing in August 2026, with the participation of officials from government and local sectors in both countries, as well as US-China strategic think tanks and research centers, such as the Asia Society Institute.
