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The author shows that the present strategic rivalry between the People's Republic of China and the United States for gaining or maintaining global leadership is close to reaching the bifurcation point. This process will be particularly dynamic in the area of Artificial Intelligence (AI). Both countries recognize that it is crucial for gaining strategic dominance over the rival. This causes the accelerated development of AI technology and its increasing impact on economic, political and social processes. The coronavirus pandemic accelerated this process, becoming its strong catalyst. The US and the PRC dominated the competition to use the technological potential of AI. Their confrontation in this field is now entering the stage of a critical point of imbalance in the international system and is causing increasing pressure on the race in the development of military AI technologies, as well as the emergence of a new geopolitics based on the effective use of big data process and technological infrastructure. This can lead to a sudden breach of the bifurcation point - a global threat caused by the introduction of AI technologies into security structures that have not been tested under critical conditions. This can cause a sudden breakdown in the stability of systems and a transition to a self-organized world critical state.

Purpose: The article aims to explore the motivations and balance of power in the US-China technological rivalry in the semiconductor and AI sectors. The secondary goal is to explain how changes in the distribution of power between China and the US affect the behaviors and security of the 3SI. Design/Methodology/Approach: The authors adopt the neorealist approach, which focuses on the analysis of structural shifts in the distribution of material power among China and the US and their influence on states' behaviors. The paper focuses on the semiconductor and Artificial Intelligence (AI) sectors as they are considered to play a crucial role in the economic development in the first half of the 21st century. Findings: Microprocessors and AI are identified as the key technologies for successful internal and external threat balancing, ensuring state security in the medium- and long-term. It is also argued that systemic US-China rivalry imposes structural stresses on the international system, and this process also exerts influence on the security in the 3SI region. Governments of 3SI are prompted to reduce the scale of cooperation with China by adopting a more restrictive approach toward the 5G procurement rules, digital infrastructure, and Foreign Direct Investment. China's rising technological capabilities serve as the primary motivation behind the US efforts to create the block of democratic digital economies oriented toward balancing China's rising power. Practical implications: Given the increasingly competitive nature of the international economy, it becomes imperative for state actors to promote the innovation-driven development which guarantees the advancement in Global Value Chains (GVCs) and sustained high growth rates. Originality/Value: The analysis provides a concise assessment of the state of technological rivalry between the US and China as well as insights into how this process may influence regional initiatives and frameworks. ; peer-reviewed