A close ally of US President Donald Trump recently visited China. He came back with a strong warning for Washington. He says the United States is missing the big picture. America is underestimating how big, fast, and advanced China’s tech industry has become.
US Senator Steve Daines is a Republican from Montana. He visited the Chinese tech cities of Hangzhou and Guangzhou in late August 2026. After his trip, Daines spoke to Bloomberg News. He warned that US leaders do not realize how good China’s tech innovation really is.
This warning comes at a very important time. In just a few weeks, President Trump will host Chinese President Xi Jinping. They will meet for a major summit in Washington on September 24, 2026.
Daines said America needs to wake up and see the real tech landscape. He noted that the US is competing against “some of the very best and brightest in the world”. Some US officials are starting to realize that tough talk and technology bans might be based on old ideas. The actual tech gap between the two countries might be much smaller than they thought.
What Senator Daines Saw in China
Visiting Top Tech Companies
During his trip, Senator Daines focused on artificial intelligence (AI), new aircraft, and computer software. He wanted to see how fast China turns lab ideas into real products.
In Hangzhou, he met with local leaders and visited Zhejiang University. This school is famous for training top AI experts. It is where the founder of the Chinese AI company DeepSeek went to school.
Daines also visited several tech startups. One of them was Manycore Tech, a 3D design software company. It is known as one of China’s top AI startups.
Flying in a Pilotless Drone
The biggest surprise happened in Guangzhou at EHang Holdings. This company makes passenger drones.
Daines did not just look at a model drone. He actually took a ride in EHang’s pilotless aircraft, the EH216-S. He was joined by US and Chinese officials.
This drone flight is a huge deal. EHang’s pilotless aircraft is the first in the world to get full safety and production certificates from a national government. China is already using these flying cars for real, commercial flights. This shows that China’s tech rules are moving very fast.
The AI Software Race
US government agencies are also worried about China’s software. Recently, they found that Chinese AI companies are copying data from top US AI models.
Companies like Alibaba, DeepSeek, and Moonshot AI reportedly took “billions of tokens” from US systems. They targeted famous AI models like Anthropic’s Claude, Google’s Gemini, and xAI’s Grok. They used this data to make their own AI systems smarter.
Treasury Secretary Scott Bessent warned about the dangers of losing this race. He said that if China wins in AI, “nothing else would matter.” He warned that even America’s massive military budget would not protect the country.
US Sanctions and High Chip Prices
Sanctions Are Not Stopping China
The US has tried to slow China down by blocking its access to advanced computer chips. However, Daines’ trip shows this might not be working as well as Washington hopes.
Chinese tech companies are simply paying higher prices to get what they need. Huawei, China’s top tech company, has sharply raised prices for its new AI chips. This is because of a global memory shortage and expensive, secret supply chains.
Huawei’s Expensive AI Chips
Huawei’s newest AI chip, the Ascend 950DT, will launch soon. Its price has jumped to more than 250,000 yuan (about $37,300).
| AI Chip Model | Old Price | New Price (Sept 2026) | Price Jump |
| Huawei Ascend 950DT | ~156,000 yuan | Over 250,000 yuan ($37,300) | Up to 60% |
| Huawei Ascend 950PR | ~60,000 yuan | Over 80,000 yuan ($12,000) | About 30% |
| Huawei Ascend 910C | ~90,000 yuan | Over 110,000 yuan ($16,000) | About 22% |
| Cambricon 690 | Unknown | Higher price set | 20% to 30% |
Other Chinese chip makers, like Cambricon, are also raising prices. Meanwhile, China’s largest chip factory, SMIC, just had a record-breaking $3 billion quarter. The factory is running at nearly full speed.
The Huawei 950DT chip costs about the same as a top US chip from Nvidia. However, the Huawei chip is much weaker. Even though Chinese buyers are getting less power for their money, they are willing to pay the high price to build their own technology.
The Upcoming Trump-Xi Summit
High Stakes for the Meeting
Senator Daines is helping to set up the big meeting between President Trump and President Xi on September 24.
The meeting will focus heavily on business. Chinese tech and car executives will travel to Washington with President Xi. Both sides are trying to agree on a $30 billion deal to lower taxes on certain goods.
| Summit Goals | What It Means |
| Tax Relief Deal | A $30 billion deal. The US might lower taxes on Chinese minerals and chips. China might drop taxes on US farm goods like soybeans. |
| Trade Boards | New groups to fix trade fights and check if China is buying what it promised. |
| AI Safety Talks | A plan to talk about AI safety and prevent accidents. It will not change the strict US chip rules. |
“Too Big to Fail”
Even though the two countries are rivals, Daines says they must work together in some areas. He said their relationship is “too big to fail”. He thinks the US and China could use AI together to find cures for cancer.
Daines told people not to expect huge changes right away. But his trip proves one thing: America’s old rules are not working perfectly anymore. China is adapting fast, and Washington needs to notice.
People Also Ask
What did Senator Steve Daines say about China’s tech industry?
Senator Daines warned that the United States is underestimating the size and quality of China’s tech sector. He said the US needs to wake up to how fast China is innovating.
What futuristic vehicle did Steve Daines fly in while in China?
He took a commercial flight in a pilotless passenger drone called the EH216-S. This autonomous flying car is made by a Chinese company called EHang.
How are US sanctions affecting Chinese AI chip prices?
US sanctions have made it hard for China to get memory parts, causing Chinese companies to raise chip prices. Huawei recently raised the price of its top AI chip, the Ascend 950DT, to over $37,000.
Why is the upcoming meeting between Donald Trump and Xi Jinping important?
The leaders are meeting on September 24, 2026, to discuss major trade deals. They hope to agree on $30 billion in tariff cuts and discuss rules for AI safety.
Did Senator Daines suggest any areas where the US and China could work together?
Yes, despite the fierce competition, Daines believes the two countries could work together on biosciences. He suggested that sharing AI technology could help speed up cancer research.
