The memorandum is a culmination of U.S. restrictions on China-U.S. investment that began in Trump’s first term, dealing a major blow to China's technological advancement.

China's top leadership's condescending speech, paired with loyalty pledges from hand-picked entrepreneurs, suggests that little will be done to revive the country's suppressed private sector.

Both the U.S. and China seem to agree that the two countries are locked in an intense contest for AI supremacy, though the outcome of this technology cold war or AI 'arms race' remains unpredictable.