US restrictions on AI access are inadvertently benefiting China’s AI development. JPMorgan Chase and Goldman Sachs, with significant operations in Hong Kong, recently blocked employees from using AI models developed by American firm Anthropic. This decision stemmed from Anthropic’s terms of use, which adhere to strict US regulations limiting China’s access to advanced American AI technology. The banks’ actions demonstrate the practical impact of these restrictions, effectively hindering their own operations in a key financial hub. Experts suggest this situation may accelerate China’s investment in and development of its own domestic AI capabilities. The unintended consequence is that the US policy, intended to limit China’s AI advancement, may instead be fueling it. This creates a competitive advantage for Chinese AI firms.