They do seem to produce plenty of good researchers, who sometimes proceed to do good research with proper funding from western institutions.
I would be more worried about Europe.
Not really a concern. The AI phobia here in Europe is pretty bad, to the point where governments are shooting themselves in the foot by legislating progress on advancing tech out.
I didn't dispute that. In fact, I brought it up.
> only manufacturing center for the GPU/CPUs needed to run the things
they don't have the designs and sanctions by American companies are surprisingly already in place and historically effective.
Finally, you are presupposing that "slowing down" in America means moving slower than China. Not only is that not necessarily the case, I don't think it's even really possible. This research can be done on readily available gaming GPU's if needed. Do you really think the US will intentionally cripple these markets in this fashion? More likely, companies will lobby for the opposite.
Any slowing down done by the US will amount to virtue signaling.
A huge percentage of AI researchers are Chinese, if PRC can convince them to work there instead of the US they won't have any trouble.