Indo-Pacific Quad Advances Semiconductors Ahead of India Summit as U.S. AI Strategy Faces Visa, Open Source, and China Challenges

Countries in the Indo-Pacific region are prioritizing the development of domestic capacities and fostering trusted partnerships to drive digital transformation tailored to their specific needs. Despite the absence of a formal trade framework, the Quad alliance is advancing cooperation in key sectors such as semiconductors, 5G technology, and clean energy, with an upcoming summit in India expected to deepen these partnerships. Concurrently, China's smart cities initiative in the Indo-Pacific is integrating digital dependencies and aligning partner cities within Beijing's technological and security ecosystem. In the United States, the AI Action Plan focuses on accelerating innovation, building infrastructure, and leading diplomatic and security efforts to maintain a competitive edge over China. However, challenges arise as the distinction between civilian and military technologies blurs, particularly in AI and quantum computing, raising concerns about the openness of American universities to international collaboration. Additionally, tighter U.S. visa policies for foreign researchers and students may hinder the country's ability to leverage AI for drug discovery, potentially impacting the biotech and pharmaceutical industries. Experts caution that if Washington's AI strategy does not adequately address open AI models, American companies risk losing international influence in AI to China. The U.S. tech sector is also attempting to catch up to China's rapid advancements in artificial intelligence, as reflected in OpenAI's recent pivot toward open source development. The debate continues over whether America's relatively light regulatory approach to AI could undermine its competitive position against China.