This is exactly the reason Anthropic's call to slow down A.I. development will fail. Shareholders will be loath to accept that the company loses its lead and a commensurate sharp decline in the company's share price. Moreover, it could lead China to catch up and eventually proclaim that it has nosed ahead of the U.S. in the field. The U.S. Government won't allow that to happen.
Like the US government wouldn't allow Iran to close the Strait of Hormuz? Or a bunch of sandal-wearing Islamists to take control over the Red Sea coastline?
The US government is not omnipotent. To the contrary, it's increasingly impotent.
China has somewhere around 200x more shipbuilding capacity than the US today. It has more shipbuilding capacity in one shipyard that the US has in all of its shipyards. China is already a force in AI and there is nothing the US government can do to stop it at this point.