Despite escalating export controls and a race for tech sovereignty, China and the US remain locked in an AI ecosystem that neither side can fully detach from, investors and scholars said at a major tech conference, reported Caixin.

The world's two largest economies are bound by open-source models, shared business incentives and the exchange of talent, speakers told Web Summit Lisbon. The event drew more than 71,000 attendees from 157 countries to the Portuguese capital November 10-13.

Division of labour will continue to define the next phase of the AI race, with US breakthroughs on foundational models and China scaling applications, said Larry Li, founding partner of venture capital firm Amino Capital.

Mr Li told Caixin that the US retains the advantage in early-stage innovation, while China's culture and training are better suited for scaling. He noted China has more engineers and a larger market.

Amino Capital, based in Silicon Valley, was an early backer of Zoom and other technology firms. Mr Li, who is from China and has lived in the US for 35 years, said both countries remain interdependent despite geopolitical rivalry.