> Allowing them to also destabilize us internally is not exactly a good idea.

The US destablized itself internally. China did not force the US to export its manufacturing base. It did not force the US to invade Iraq. It did not force the US to create a housing market bubble. It did not force the US to create massive income and wealth inequality. It did not force the US to supress transitioning away from oil towards cheap renewables. It did not force the US start a global oil shortage by invading Iran.

That having found itself at the tail of 25 years of poor financial planning, the US decided to go double-or-nothing by betting on LLMs to bail out the economy... does not mean that China has to fold its hand.