China could also feel pressure to maintain a hold on their national investment. Beijing has invested heavily to develop the next generation of the technology's leaders with their 2018 incentives to grow AI in schools. 535 universities have since created AI undergraduate majors, compared to roughly 14 such colleges in the U.S.
China is also likely worried about their homegrown talent leaving their country over buyouts or for another lifestyle overseas. Eurasia Group technology analyst Xiaomeng Lu said such relocation can really have an impact on the nation’s industry as a whole.
“For the tech sector, brain drain can have a devastating effect on a country,” she said. “The initial signal is: Stay here, don’t run away.”