Experts acknowledge that the US needs efficient collaboration with China for further AI development. So, instead of juggling tariffs, the White House would rather make efforts to team up with Beijing. According to analysts at Morgan Stanley, the successful advancement of artificial intelligence in the United States depends on efficient collaboration with China. It goes without saying!  

Bank analysts believe that despite the recent easing of tariff tensions following US–China trade talks, America's long-term ambitions in physical AI cannot succeed in isolation. Morgan Stanley notes that China currently holds an “enviable position” in AI development. “We wouldn’t be surprised to see further cooperation between US manufacturing companies and China, involving Chinese technologies produced on American soil,” the bank emphasizes.

Tesla deserves particular attention as a potential leader in developing this cooperation. Morgan Stanley analysts also believe that American consumers will demand high-quality Chinese electric vehicles.

The bank is certain that the challenge of bringing AI-related production back to the US without Chinese involvement will be “extremely tough” over the next five years. “Competition does not necessarily mean isolation,” Morgan Stanley says. The bank highlights that rivalry between countries can coexist with industrial partnerships.

Regarding trade tensions, analysts doubt that tariffs will remain the focal point for long. They predict that “more urgent and strategic themes” related to AI and the digital sector will take center stage by the end of 2025.