China is rapidly closing the gap with the United States in the global artificial intelligence (AI) race, as Chinese AI models gain popularity worldwide and challenge American dominance. The AI ecosystem is becoming more diverse and competitive, with a growing number of strong foundation model companies in China surpassing those in the US and other regions. Industry experts note that the lead held by American frontier AI companies is narrowing, and progress in AI is accelerating across major labs globally, including xAI, OpenAI, Google, and Chinese institutions. The development of open-source AI models is seen as a critical factor in fostering innovation and resilience, as it allows broader access and prevents control by a few gatekeepers. Prominent voices in the tech community emphasize that AI must remain permissionless to avoid constraints that could hinder progress, advocating for open-source approaches to ensure the future of AI development remains inclusive and dynamic.