The "China will win the AI race" if we in the West (America) don't is an excuse created by those who started the race in Silicon Valley. It's like America saying it had to win the nuclear arms race, when physicists like Oppenheimer back in the late 1940s were wanting to prevent it once they understood the consequences.

okay, and?

what do you picture happening if Western AI companies cease to operate tomorrow and fire all their researchers and engineers?