China is leveraging open-source AI models to gain global influence, potentially creating dependencies on its technology and values. This article argues that U.S. policymakers are focusing on the wrong threats by restricting open AI models and suggests that embracing open-source innovation is key to maintaining U.S. leadership in AI. It outlines strategies like investing in open development, promoting adoption, and avoiding restrictive policies to counter China's growing AI dominance. A compelling call for 'open-source diplomacy' in the AI race. This was written over a week ago, and now with the advent of the R1 model out of China it seems even more relevant and timely.