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White House: US will lead in AI, but China is catching up

EXCLUSIVE: China’s innovation in artificial intelligence is «accelerating,» according to Michael Kratsios, director of the White House Office of Science and Technology. He told Fox News Digital that the United States’ «promote and protect» strategy will solidify its standing as the world’s dominant power in AI.
Kratsios, who served as chief technology officer during the first Trump administration, sat for an exclusive interview with Fox News Digital on Monday.
FLASHBACK: US TECHNOLOGY CHIEF WARNS CHINA ‘TWISTING’ ARTIFICIAL INTELLIGENCE TO TARGET CRITICS, AS AMERICA JOINS GLOBAL PACT
«The White House in the first Trump administration redefined national tech policy to focus on American leadership in emerging technologies, and those were technologies like artificial intelligence, quantum computing and 5G, [which] were big back then,» Kratsios said. «The president, at that time, signed the executive order prioritizing U.S. leadership in AI, back in 2019 when people weren’t even talking about it.»
Michael Kratsios, Director of the White House Science and Technology Office. ( Michael Brochstein/SOPA Images/LightRocket via Getty Images)
«He recognized that it was critical for the U.S. to lead in AI,» Kratsios said. «We got the ball rolling on what the U.S. national strategy is and how we would win.»
During his first administration, Trump signed the first-ever executive order on AI in 2019. He also took executive action in 2020 to establish the first-ever guidance for federal agency adoption of AI to deliver services to the American people and «foster public trust» in the technology.
But Kratsios said that when former President Joe Biden took office, the attitude of his administration toward AI shifted to «one of fear and one of over-regulation.»
«There was a fixation on what I would call harms, so, spending time and energy thinking about all the things that could go wrong with this technology, versus having a balanced approach, where you try to minimize things that could go poorly, and more importantly, look at ways this technology can transform America for the better,» Kratsios explained, noting that Biden officials were «harms focused,» which he said was «manifested in a lot of the policies that they did, in the way that they were very reticent to applying some of this technology to a lot of the issues that government faced, like how you make agencies more efficient.»
Kratsios reflected on Trump’s AI message during the campaign, saying he «made it very clear that we as a country need to win and be dominant in artificial intelligence.»

The United States’ «promote and protect» strategy will solidify its standing as the world’s dominant power in AI. (Jaap Arriens/NurPhoto via Getty Images)
«And he acted very decisively,» Kratsios said, pointing to Trump’s move on his third day in office to direct him and other officials to develop an AI action plan.
«It was a way to review everything that had been done under the Biden administration and turn the page with an agenda that’s focused on sustaining and ensuring continued U.S. leadership in this particular technology, and that’s what we’ve been working on,» Kratsios said.
‘AI POWERHOUSE’: WHITE HOUSE ENCOURAGES AMERICANS TO PROVIDE IDEAS FOR ARTIFICIAL INTELLIGENCE STRATEGY
Kratsios explained that the U.S. is «the leader» in AI, specifically when it comes to the «three layers of technology,» which he said are chips or high-end semiconductors, the model itself and the application layer.
«If you look at all three of those layers, the U.S. is the leader,» Kratsios said. «We have the best chips. We have the best models. And we have the best applications to date.»
But he warned that the Trump administration is «seeing the velocity of innovation» from China.
«We’re seeing the speed at which the PRC is catching up with us is actually accelerating,» he explained.
Kratsios referenced DeepSeek, which was released by a Chinese firm earlier in 2025 and develops large language models.

DeepSeek was released by a Chinese firm earlier in 2025 and develops large language models. (Reuters/Dado Ruvic/Illustration)
«I think what DeepSeek revealed is that the Chinese continue to make progress and are trying really hard to catch up with us on those three layers,» Kratsios said.
But the key to maintaining U.S. dominance in the space is the Trump administration’s «promote and protect» strategy, Kratsios explained.
Kratsios said the Trump administration will «promote» by continuing to accelerate the development of technology and encouraging more Americans, American companies and countries around the world to use that technology.
«And then on the protect side, what is it that the U.S. has which could be useful to the PRC to accelerate their efforts in AI? We protect that technology from access by the Chinese,» Kratsios said, pointing to high-end semiconductors and chips that the Chinese «shouldn’t have access to, because that would make it easier for them to accelerate their efforts.»
«How do we speed up innovation here at home and slow down our adversaries?» Kratsios said.
OPINION: HOW TEAM TRUMP CAN MAKE AI STAND FOR AMERICAN INNOVATION
The answer, Kratsios said, is AI research and development that continues to drive innovation. He also said the Trump administration needs to continue to remove regulations and barriers to AI innovation, and also prepare and train Americans in the workforce to «better leverage this technology.»
Kratsios said another step is ensuring that foreign allies partner with the U.S. to «make sure that they are also keeping the PRC at bay and that they continue to use the American AI stack.»

During his first administration, Trump signed the first-ever executive order on AI. (Evelyn Hockstein/Reuters)
«So, if you’re any country in the world that wants to use AI, you’d want to use an American stack,» he explained. «So we should make it as easy as possible in order for us to export our technology to like-minded partners.»
As for China, Kratsios said the PRC «is probably one of the most sophisticated surveillance states in the world, and that is underpinned by their own artificial intelligence technology.»
«I think the goal of the United States should be to continue to be the dominant power in AI. And there are certain inputs to the development of AI which we can control, and which we would not want the PRC to have access to,» he said. «And the most important pieces are sort of these very high-end chips that they can use to train models, and also certain equipment that would allow them to build their own very high-end chips.»
He added: «And if we can kind of continue to make it challenging for them to do that. I think it’ll be the benefit of the U.S.»
Looking ahead, Kratsios echoed the president, saying the U.S. is in the «golden age» and that this special moment in time is «underpinned by unbelievable science and technology.»
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«We want to put an American flag on Mars,» Kratsios said. «We want to fly supersonic again. We want drones to be delivering packages around the world. We want AI to be used by American workers to allow them to do their jobs better, safer and faster.»
He added: «We have an opportunity to all these things, like so much more, in these four years. And this office is going to be the home for driving that innovation across so many technological domains.»
Artificial Intelligence,Science & Technology Culture,Donald Trump,Trump’s First 100 Days
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JD Vance says government likely ‘headed into a shutdown’ after Trump meets with Dems

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Republican and Democratic congressional leaders left a meeting with President Donald Trump with no deal to avert a government shutdown as the deadline fast approaches.
Leaders met with Trump on Monday for roughly an hour to negotiate a path forward to avert a partial government shutdown, but it appeared neither side was willing to budge from their position.
Vice President JD Vance said after the meeting, «I think we’re headed into a shutdown because the Democrats won’t do the right thing. I hope they change their mind.»
«If you look at the original they did with this negotiation, it was a $1.5 trillion spending package, basically saying the American people want to give massive amounts of money, hundreds of billions of dollars to illegal aliens for their health care, while Americans are struggling to pay their health care bills,» Vance said. «That was their initial foray into this negotiation. We thought it was absurd.»
DEMS NOT BUDGING ON GOVERNMENT SHUTDOWN DEMANDS AHEAD OF HIGH-STAKES TRUMP MEETING, JEFFRIES SUGGESTS
Vice President JD Vance, Speaker Mike Johnson, R-La., Senate Majority Leader John Thune, R-S.D., and Office of Management and Budget Director Russ Vought spoke to reporters after congressional leaders met with President Donald Trump on Sept. 29, 2025. (Win McNamee/Getty Images)
Democrats, however, have pushed back on assertions that they’re looking to salvage healthcare for anyone but the American people.
«There was a frank and direct discussion with the President of the United States and Republican leaders. But significant and meaningful differences remain,» Jeffries said. «Democrats are fighting to protect the health care of the American people, and we are not going to support a partisan Republican spending bill that continues to gut the health care of every day America, period.»
Congress has until midnight Oct. 1 to pass a short-term funding extension, or continuing resolution (CR), to avert a partial government shutdown. The House already passed a funding extension, but the bill was blocked in the Senate earlier this month.
Republicans and the White House want to move forward with their «clean,» short-term funding extension until Nov. 21, while Democrats have offered a counter-proposal that includes a permanent extension of expiring Obamacare tax credits and other wishlist items that are a bridge too far for the GOP.
Vance appeared alongside Speaker Mike Johnson, R-La., Senate Majority Leader John Thune, R-S.D., and Office of Management and Budget (OMB) Director Russ Vought in a show of Republican unity after the meeting, but made clear both sides are still far apart.
Thune, holding up a copy of the funding extension, panned Jeffries and Schumer’s accusation that the bill was partisan in nature.
Congressional Republicans argue that the House GOP’s is everything that Democrats pushed when they controlled the Senate: a «clean,» short-term extension to Nov. 21 without partisan policy riders or spending, save for millions in new spending for increased security for lawmakers.
SHUTDOWN EXPLAINED: WHO WORKS, WHO DOESN’T AND HOW MUCH IT COSTS

Senate Minority Leader Chuck Schumer, D-N.Y., and House Minority Leader Hakeem Jeffries, D-N.Y., left, hold a news conference on the GOP reconciliation bill, at the Capitol in Washington, Wednesday, June 11, 2025. (AP Photo/J. Scott Applewhite, file)
«To me, this is purely a hostage-taking exercise on the part of the Democrats,» Thune said. «We are willing to sit down and work with them on some of the issues they want to talk about, whether it’s an extension of premium tax credits, with reforms, we’re happy to have that conversation. But as of right now, this is a hijacking.»
Neither Schumer nor Jeffries took questions after their remarks, but appeared slightly more optimistic than their GOP counterparts after the meeting concluded.
«I think for the first time, the president heard our objections and heard why we needed a bipartisan bill,» Schumer said. «Their bill has not one iota of Democratic input. That is never how we’ve done this before.»
Vance said he was «highly skeptical» that it was Trump’s first time hearing the issue and said there was a bipartisan path forward on healthcare – but panned Democrats’ push to include an extension of COVID-19 pandemic-era Affordable Care Act (ACA) extensions in the bill.
«We want to work across the aisle to make sure that people have access to good healthcare,» he said, but added, «We are not going to let Democrats shut down the government and take a hostage unless we give them everything that they want. That’s not how the people’s government has ever worked.»
The meeting in the Oval Office comes after Trump canceled a previously scheduled confab last week with just Schumer and Jeffries. At the time, the president railed against their demands on his social media platform Truth Social and contended that congressional Democrats were pushing «radical Left policies that nobody voted for» in their counter-CR.

President Donald Trump speaks at a hearing of the Religious Liberty Commission at the Museum of the Bible, Monday, Sept. 8, 2025, in Washington. (AP Photo/Alex Brandon)
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Democrats’ demands center on an extension to expiring Affordable Care Act subsidies, though their counter-proposal also included language to repeal the healthcare section of the GOP’s «big, beautiful bill» and a clawback of canceled NPR and PBS funding.
Senate Republicans have argued that Democrats’ desires are unserious, and Thune has publicly said that Republicans would be willing to have discussions on the ACA subsidies, which are set to sunset at the end of this year, after the government is funded.
Schumer insisted Democrats needed it addressed immediately, however, in a press conference back on Capitol Hill after the meeting.
«We think when they say later, they mean never. We have to do it now, first because of the timing issue and second, because now is the time we can get it done,» he said.
The White House is also leveraging the threat of mass firings should the government shut down that go beyond the standard furloughing of nonessential employees. Still, Schumer and Senate Democrats have not buckled.
The Senate is expected to vote again on the bill on Tuesday.
politics,house of representatives politics,government shutdown,senate,jd vance
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La reunión entre Trump y los líderes demócratas terminó sin acuerdo para evitar el cierre del Gobierno

La reunión entre los líderes demócratas del Congreso y el presidente estadounidense, Donald Trump finalizó este lunes sin que se alcanzara un entendimiento para tratar de evitar el cierre del Gobierno federal que se activaría a partir de este miércoles.
“Tenemos grandes diferencias en materia de salud y en su capacidad para revertir cualquier presupuesto que acordemos mediante rescisiones y embargos”, declaró a la prensa el líder de la minoría demócrata en el Senado, Chuck Schumer, al salir de la Oficina Oval de la Casa Blanca tras su reunión con el mandatario.
De acuerdo con los demócratas que asistieron a la reunión, se hizo ver a Trump “las consecuencias de lo que sucede en la atención médica al buscar recortes de seguros de salud”.
“Por su rostro, parecía que era la primera vez que escuchaba sobre este problema”, dijo Schumer a la prensa sobre la reacción del presidente durante el encuentro, en el que también estuvo el líder de la minoría demócrata en la Cámara de Representantes, Hakeem Jeffries, así como los líderes republicanos en la Cámara Alta y Baja, John Thune y Mike Johnson.
Por su parte, el vicepresidente estadounidense, J.D. Vance, dijo a medios al salir de la reunión: “Creo que nos encaminamos hacia un cierre porque los demócratas no harán lo correcto”.
En menos de dos días las expira el plazo para lograr un acuerdo de financiamiento para el Gobierno, y ambas partes insisten en señalar al opositor como responsable por no ceder.
Los demócratas exigen que se prorroguen los subsidios de la ley para el cuidado asequible de la salud (Obamacare) que expiran a final de año, así como la reversión de los recortes al programa Medicaid que resultaron de la gran ley de recortes presupuestarios y fiscales aprobada en julio pasado.
Sin embargo, los republicanos en el Congreso han dicho que aceptarán negociar ambos apartados solo si los demócratas dan su apoyo a un presupuesto provisional en una votación que tendría lugar mañana en el Senado y que mantendría el Gobierno operativo hasta noviembre.
Los republicanos presentaron el pasado 19 de septiembre ese presupuesto provisional en el Senado para su ratificación, pero este resultó rechazado porque su mayoría en la Cámara es insuficiente y requiere de al menos siete votos demócratas para la aprobación del proyecto de ley.
Al riesgo de una paralización del Gobierno federal se añade la posibilidad de despidos masivos de funcionarios públicos, según un memorando de la Oficina de Gestión y Presupuesto, que ha ordenado a las agencias que identifiquen programas clasificados como no esenciales para continuar su misión y reducir el personal federal.
Si el Congreso no toma medidas, miles de trabajadores del Gobierno federal podrían ser suspendidos, desde la NASA hasta los parques nacionales, y una amplia gama de servicios se verían interrumpidos.
Los tribunales federales podrían tener que cerrar y las subvenciones a las pequeñas empresas podrían retrasarse.
Los enfrentamientos presupuestarios se han convertido en algo relativamente rutinario en Washington en los últimos 15 años y a menudo se resuelven en el último minuto. Sin embargo, la voluntad de Trump de anular o ignorar las leyes de gasto aprobadas por el Congreso ha inyectado una nueva dimensión de incertidumbre.
Los demócratas han presentado un plan que prorrogaría la financiación actual entre siete y diez días, según fuentes del partido, lo que podría dar tiempo a alcanzar un acuerdo más duradero. Se trata de un plazo más corto que el respaldado por los republicanos, que ampliaría la financiación hasta el 21 de noviembre.
El líder republicano en el Senado, John Thune, trató de presionar a los demócratas programando una votación el martes sobre el proyecto republicano, que ya fracasó una vez en el Senado.
Ha habido 14 cierres parciales del Gobierno desde 1981, la mayoría de los cuales duraron solo unos días. El más reciente fue también el más largo, 35 días en 2018 y 2019 debido a una disputa sobre inmigración durante el primer mandato de Trump.
(Con información de EFE y Reuters)
Corporate Events,North America,Government / Politics,WASHINGTON
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