Bankers at JPMorgan Chase and Goldman Sachs in Hong Kong were cut off from using Anthropic’s advanced AI models in April and June following US-imposed restrictions. This sudden enforcement highlights growing geopolitical tensions around AI technology supply and marks a turning point that favors China’s AI industry by default.
- US export controls block foreign access to Anthropic’s most advanced AI models.
- Chinese AI models gain traction for cost-effective, open-source alternatives.
- EU and UK express concern over losing ground in AI development and leadership.
What happened
JPMorgan Chase and Goldman Sachs in Hong Kong ceased use of Anthropic’s AI technology in April and June respectively, following a strict interpretation of Anthropic’s terms of use aligned with US export controls. The US Commerce Department mandated denying access to Anthropic’s flagship AI models, Fable 5 and Mythos 5, for all foreign users, including Anthropic’s own foreign staff, on grounds of national security.
The directive required an immediate shutdown of access within 90 minutes, disrupting financial sector operations in Hong Kong, a major international financial center. This abrupt enforcement exposes the fragility of global AI infrastructure dependent on US technology and heightens the impact of geopolitical rivalries surrounding AI advancements.
Why it matters
The ban threatens Hong Kong’s efforts to regain its stature as a global financial hub where rapid AI adoption is critical, especially in sectors like coding and financial analytics. With access to top-tier US AI models curtailed, firms are turning to Chinese AI providers offering alternatives that, while less cutting-edge, are much more affordable and increasingly competitive.
Chinese AI models such as DeepSeek’s V4 Pro, Xiaomi’s MiMo V2.5 Pro, and Alibaba’s Qwen3.7 Max not only compete in terms of efficiency and performance but are also open source. This openness allows clients flexibility and mitigates the risk of sudden regulatory restrictions, contrasting with restrictive US policies. Consequently, these Chinese models have gained popularity domestically and internationally, notably in developing markets.
What to watch next
The unfolding situation will test whether China’s AI industry can capitalize on reduced competition from US firms to expand its global influence, especially in emerging markets seeking affordable and customizable AI solutions. The degree to which Western firms can adapt or develop indigenous models will also be critical to their continued competitiveness.
Meanwhile, European leaders are voicing alarm over increased US restrictions and the risk of technological dependence, pushing for greater investment in native AI capabilities. Tracking policy responses from the EU and UK will provide insight into future shifts in global AI leadership and potential new alliances or export control policies.