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geopoliticsFriday, July 17, 2026

China catches up in AI race

China has closed the AI gap with the US to just weeks, according to a new analysis. Meanwhile, the Strait of Hormuz crisis deepens as shipping collapses despite no formal closure, and Iran threatens to seal the Bab el-Mandeb if the US strikes its power grid.

Sources
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AI catch-up

The most consequential story today is China's claim that it has erased the US lead in frontier AI.

#01www.aei.orgJul 17
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China Has Caught Up in Frontier AI

Four outlets are covering this: Moonshot AI's Kimi K3 model has 2.8 trillion parameters and matches Claude Opus 4.8. The article argues the US-China AI gap has shrunk to weeks, shifting competition to industrial systems.

4 min readRead original

Hormuz chokehold

The Strait of Hormuz crisis is not just about mines and warships, fear alone has shut down the waterway, and the threat is spreading to other chokepoints.

Also today14

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