What the article calls AI is just machine learning. And America leads the way on this when it comes to cutting edge. Look at self driving cars.
It seems the article hinges on implicitly defining AI as adopting mass surveillance/freedom restricting tech.
In reality if America cares about winning the 'tech development war' (I think a better goal than the nebulous 'ai war') with China, it should be worried about improving it's education system. And working on reducing corruption (both in government spending and in private industry such as banking and health care) - In the end, it was education, freedom and efficiency that allowed the west to beat out totalitarian governments. Not the adoption of totalitarian systems of oppression.
Imagine the US trying to adopt the USSR's system to 'obtaining and classifying information' on dissidents since it was part of 'information technology'. I find the article to have a borderline fascist/anti-western-ideals of freedom undertone. Some people think in a way that seems to be completely lacking in the ability to learn from history.