If the world is built on AI infrastructure (models, compute, etc.) that is controlled by the CCP then the west has effectively lost.

This may lead to better life outcomes, but if the west doesn't control the whole stack then they have lost their sovereignty.

This is already playing out today as Europe is dependent on the US for critical tech infrastructure (cloud, mail, messaging, social media, AI, etc). There's no home grown European alternatives because Europe has failed to create an economic environment to assure its technical sovereignty.

Europe has already lost the tech race - their cloud systems that their entire welfare states rely upon are all hosted on servers hosted by American private companies, which can turn them off with a flick of a switch if and when needed.

When the welfare state, enabled by technology, falls apart, it won't take long for European society to fall apart. Except France maybe.