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Significance

Military applications of AI are rapidly reshaping global power dynamics, as evidenced in the Russia-Ukraine and Israel-Hamas conflicts. Against this backdrop, the United States and China have intensified their competition to lead in the field.

Impacts

China's defence sector could face short-term hurdles due to limited access to advanced AI systems.

China's military may accelerate domestic AI research to mitigate the effects of US restrictions, boosting domestic capabilities.

Other countries may boost AI investments in their defence industries to keep pace with China's advancements.

US tech companies may face decreased revenues due to curtailed access to the Chinese market.

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