China defies America’s AI hegemony
(MENAFN) The global artificial intelligence landscape has reached a turning point, with China rapidly expanding its AI capabilities and influence since 2023 as part of its broader ambition to shape a new world order. AI is becoming the driving force of a new wave of scientific and industrial transformation, and Beijing is confident that the technology can generate lasting value.
China has emerged as both a powerhouse of AI innovation and a key architect of AI governance. Its development model—low cost, high performance, and open source—offers a stark contrast to Western strategies built on proprietary systems and competitive containment.
Beijing’s ambitions are rooted in long-term planning. Its 2017 New Generation Artificial Intelligence Development Plan set a goal of becoming the world’s AI leader by 2030, with the sector projected to reach $1.4 trillion in value. AI is seen as vital to counter demographic challenges such as an aging population and slower growth, while pushing China toward a more advanced, innovation-driven economy.
The country’s AI strategy is based on four pillars: data, energy, computing power, and skilled talent. China already leads in three—its massive population generates unparalleled data, its energy sector is growing rapidly, and it has a highly trained STEM workforce. Computing hardware remains its main vulnerability due to Western export restrictions, but Beijing is investing heavily to achieve self-sufficiency.
The US has sought to limit China’s progress by blocking access to advanced chips. In July 2025, the Trump administration introduced Winning the Race: America’s AI Action Plan, focusing on preserving US dominance through technological and policy advantages. The plan promotes export restrictions on AI tools and the suppression of Chinese AI models, reflecting what critics describe as a zero-sum approach that prioritizes control over collaborative global progress.
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