Why national security – not market forces – will define the US-China AI race

National security concerns, not market forces, will determine the outcome of the US-China AI race, as demonstrated by Beijing's decision to block Meta's $2 billion acquisition of Singapore-based AI startup Manus AI in April 2026. The move underscores how geopolitical tensions override commercial logic in the AI sector, with both nations prioritizing military and strategic advantages over economic efficiency.

Why national security – not market forces – will define the US-China AI race Artificial intelligence sits at the intersection of economic productivity and military capability IN A recent commentary carried in The Business Times , “ When the disruptor gets disrupted: How Chinese open-source AI is eating its own industry” https://www.businesstimes.com.sg/international/when-disruptor-gets-disrupted-how-chinese-open-source-ai-eating-its-own-industry , veteran economic affairs columnist Vikram Khanna astutely shows how Harvard professor Clayton Christensen’s theory of “disruptive innovation” is visibly under way. In short, Khanna said that the US artificial intelligence labs are being overtaken by the Chinese ones, because models from China are cheaper to use and perform almost as well as their Western competition. Yet disruption theory on its own cannot account for Beijing’s decision to block Meta’s US$2 billion acquisition of Manus AI https://www.businesstimes.com.sg/international/global/china-blocks-metas-us2-billion-acquisition-singapore-based-ai-startup-manus in April 2026. TRENDING NOW /pulse?ref=trending-now Early payout from Philippines’ Maharlika Investment Fund raises eyebrows over its true nature A new kind of ‘ceasefire’ between US and Iran where talks, strikes are part of the same process Philippines’ income upgrade hides grim reality for most Filipinos Macquarie upgrades STI 12-month target to 6,000, names its top picks