Are the USA and China locked in a race to artificial general intelligence (AGI) and global strategic dominance? Through analysis of policy documents, public statements, and industry developments from 2017 to 2025, this chapter traces the emergence of the ‘AI race’ narrative. It distinguishes between general AI competition and the more consequential claim that China is racing towards AGI—a threshold that proponents argue could enable permanent strategic advantage. It critically evaluates the evidence for the Chinese pursuit of AGI, finding limited support for claims of a concentrated state-led effort. The analysis reveals how the ‘AI race’ narrative has been used in the USA to justify accelerated AI development and reduced regulatory oversight, despite rhetoric from Chinese officials calling for cooperation and safety to be prioritized. The chapter argues that the narrative functions as a potentially self-fulfilling prophecy that could accelerate dangerous race dynamics while undermining prospects for international cooperation on AI safety. It concludes with recommendations for reframing competitive dynamics, identifying opportunities for cooperation on shared safety challenges, and maintaining communication mechanisms to prevent miscalculation as AI capabilities advance.