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In a note from Bernstein laying out their predictions for China and AI, app development, use cases, and race to build AI-based platforms will continue to surge. Due to Biden administration restrictions around how and what sort of AI chips companies are allowed to export to China, it may put a damper on some of China's ability to compete in the AI race. Bernstein Managing Director and Senior Analyst Stacy Rasgon, joins Yahoo Finance to discuss the AI race in China and their ability to compete with American companies. When asked about the gap between China and America chips, and what they have to do to catch up, Ragson explains that there is a big gap and "What does that mean? That means you have to shovel more chips at the problem. For example the Huawei Ascend supposedly is roughly equivalent to a Nvidia A100, and that part from Nvidia is two or three years old...If they want to get the same amount of performance as Nvidia's or others are delivering with their current parts, they'll have to put a lot more silicon in place in order to do that, so that costs money in terms of chip cost, it cost a lot of money in terms of power and infrastructure and everything else, and so is it going to be cost competitive? Like if they had to sell that stuff elsewhere? Absolutely not, it's not competitive, but they have no choice, so they'll do it." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino