China has surpassed the United States as a leading producer of artificial intelligence (AI) talent, producing almost half of the world's top AI researchers, according to a study by think tank MacroPolo. This marks a significant shift from three years ago when China produced about one-third of the top AI talent. The research highlights the importance of attracting and retaining global talent to maintain the U.S.'s leadership in AI. China's success in nurturing AI talent is attributed to its heavy investment in AI education, although its programs are not heavily focused on the generative AI technology dominating the U.S. AI industry. Policymakers face the challenge of countering Chinese espionage while fostering the flow of top Chinese computer engineers into the U.S.