US-China AGI competition and infrastructure tensions

Tensions regarding the competition for Artificial General Intelligence (AGI) dominance have escalated between the United States and China, involving both military rhetoric and allegations of covert influence.

In early September 2026, a US security expert proposed that the United States prepare for extreme measures to prevent Chinese AGI dominance, including cyber operations and potential military strikes against Chinese data centers. Chinese state media criticized these suggestions, labeling military strikes on civilian infrastructure a ‘dangerous illusion’ that could escalate conflict between nuclear-armed powers.

By mid-September, the focus shifted to allegations of Chinese influence operations within the United States. During a House Foreign Affairs subcommittee hearing, witnesses testified that China is using bot networks and state-supported groups to foster public opposition to US AI infrastructure. Testimony alleged that Beijing employs a “documented double standard” by criticizing US data center costs and environmental impacts while subsidizing its own AI energy needs. These activities were reportedly linked to campaigns that contributed to delays or reductions in approximately $23.6 billion of proposed US AI infrastructure investment.