On Monday, Anthony Pompliano argued that the U.S. should outperform Chinese AI rivals through innovation rather than restrictions, as reports suggest the Donald Trump administration is weighing new limits on advanced Chinese AI models.
Pompliano Urges Competition Over Chinese AI Restrictions
Professional Capital Management CEO Pompliano criticized the idea of banning Chinese AI models, saying American companies should respond with better technology instead of relying on government intervention.
"Banning Chinese models is the most un-American thing we could do. Stop complaining and start competing. People won’t use Chinese models if American companies build something better," Pompliano wrote on X.
Banning Chinese models is the most un-American thing we could do.
— Anthony Pompliano 🌪 (@APompliano) July 20, 2026
Stop complaining and start competing.
People won't use Chinese models if American companies build something better.
His comments came after Axios reported that the Trump administration is showing renewed signs it could move to restrict advanced Chinese AI models, following the rapid rise of Moonshot AI’s open-source Kimi model.
According to the report, administration officials have previously explored several measures.
This included adding Chinese AI labs to the Commerce Department’s Entity List, issuing guidance discouraging the use of Chinese AI systems and requiring U.S. companies hosting Chinese models to assume liability for potential security breaches.
While those proposals were shelved last year, the publication said they are gaining momentum again as national security concerns grow.
The White House did not immediately respond to Benzinga’s request for comments.
Chinese AI Debate Divides Washington
Many U.S. companies have reportedly begun adopting open-source Chinese models because they are less expensive while offering performance that rivals domestic alternatives.
At the same time, national security officials have raised concerns about potential cybersecurity risks tied to the technology.
Former White House AI and crypto czar David Sacks also criticized using regulatory uncertainty to discourage companies from adopting Chinese AI.
OpenAI’s head of strategic futures, Dean Ball, also said several U.S. government agencies had effectively barred employees from using Chinese AI tools over weakly supported safety concerns.
Pentagon Under Secretary Emil Michael disputed that characterization, saying Congress passed a 2026 law restricting only certain uses of DeepSeek and High Flyer models while allowing waivers in specific cases, rather than imposing a blanket ban.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Pixels Hunter on Shutterstock.com
