United States Faces Warnings Over AI Domination by China
China is making significant strides in key AI areas such as computer vision, AI chips, robotics, and applications. Recently, China proposed the establishment of a new international body, the World Artificial Intelligence Cooperation Organization (WAICO), at the 2025 World Artificial Intelligence Conference (WAIC) in Shanghai. This organization aims to foster international cooperation in AI development and regulation.
A New Approach to Global AI Governance
The WAICO initiative is part of China's broader efforts to promote multilateralism and address calls from the Global South for greater inclusivity in tech governance. China has also outlined a 13-point Action Plan for Global AI Governance, which includes practical steps for global AI coordination. This plan emphasizes infrastructure development, sectoral application, data quality and security, an open and inclusive ecosystem, sustainability, and international cooperation to bridge the digital divide.
Distinctive Features of China's Proposal
- Inclusivity and Multilateralism: Unlike Western-led initiatives, China's proposal emphasizes inclusivity, inviting all willing countries to participate. This is a significant departure from historical criticisms of exclusivity in Western-led initiatives.
- Model of Governance: China's approach is based on the principles of "consultation, co-construction, and sharing," which contrasts with Western models that often prioritize individual rights and freedoms. China seeks to play a leading role in shaping AI governance norms that align with its own political and economic objectives.
- Technological Access and Monopolies: China is actively promoting open-source AI development and criticizing technological monopolies, placing it at odds with U.S. policies aimed at maintaining American dominance in AI. While Western countries, especially the U.S., have been cautious about sharing advanced AI technologies due to security concerns, China promises to share technological advances with developing nations.
- Global Presence: By establishing a global AI cooperation body headquartered in Shanghai, China seeks to counterbalance U.S. influence and present itself as a major player in global AI governance. This move is strategic in challenging Western dominance in AI while positioning China as a leader capable of fostering international consensus and cooperation.
Geopolitical Ambitions
China's initiative is also driven by broader geopolitical ambitions. It seeks to normalize its use of advanced technologies like AI for national purposes, such as surveillance, while promoting its image as a benevolent global power. By leading in AI governance, China aims to shape international norms and regulations that align with its own political and economic goals.
The choice between American and Chinese AI systems will shape the technological and economic futures of many countries for decades to come. The US aims to maintain technological leadership while preventing China from building an alternative ecosystem. However, increasing restrictions on cross-border data movement between the US and China, and the US's export controls limiting China's access to advanced semiconductors, could potentially lead to the maintenance of separate technology infrastructures, posing challenges for companies and creating difficult choices for multinational corporations.
The US-China AI split creates barriers to cross-border AI investments and academic partnerships, and potentially economically depends developing nations on China. An Asian diplomat noted privately that the world is being asked to choose sides in a technology war they didn't start but can't avoid, with the question not being whether to pick a side, but when and at what cost.
Joint ventures may face political scrutiny due to the US-China AI split, and many developing nations see few alternatives to Chinese AI due to the high costs of Western technology. The US-China AI split is playing out in conferences, standards bodies, and deployment decisions worldwide, marking a turning point in global AI development towards a fragmented landscape with competing standards, governance models, and technology stacks. The AI cold war is escalating, and the question remains: who will shape the future of AI?
References:
- The Diplomat
- China Daily
- South China Morning Post
- Knowledge@Wharton
- The Conversation
- China's proposal for the World Artificial Intelligence Cooperation Organization (WAICO) highlights the scale and focus on innovation in its AI ambitions, aiming to foster cooperation and regulation within the industry.
- The WAICO's 13-point Action Plan for Global AI Governance includes strategies for business development, technology advancement, and collaboration, with a strong emphasis on infrastructure development, sectoral applications, and data quality and security.
- China's AI strategy seeks to counterbalance competitors, such as the United States, by sharing technological advances with developing nations, providing an open and inclusive AI ecosystem for cooperation in the industry.
- The establishment of WAICO in Shanghai serves as a framework for China to flex its leadership in AI governance, challenging the dominance of Western models and positioning itself as a ruler of global consensus and cooperation.
- The geopolitical ambitions behind China's AI initiative are evident in its efforts to shape international AI norms, aligning with its political and economic objectives while promoting itself as a benevolent global power.
- The US-China AI split presents a challenge for multinational corporations as they navigate the complex landscape of cross-border AI investments, academic partnerships, and potentially face political scrutiny in joint ventures.
- The fragmented landscape of global AI development arising from the US-China AI cold war could lead to economically dependent developing nations, as they grapple with the choice between expensive Western technology or affordable Chinese alternatives.
