China Unveils AI Strategy Shortly After the U.S. Amid Intensifying Global Tech Competition

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Chinese Premier Li Qiang spoke at the opening of the World Artificial Intelligence Conference in Shanghai on Saturday, July 26, 2025. Bloomberg | Bloomberg | Getty Images

SHANGHAI — The tech race between the world's two largest economies has just intensified. China on Saturday released a global action plan for artificial intelligence, urging for international cooperation on tech development and regulation. 

The announcement coincided with the annual, state-organized World Artificial Intelligence Conference, where Premier Li Qiang revealed that the Chinese government has proposed the establishment of a global AI cooperation organization, according to an official readout. 

Days earlier, U.S. President Donald Trump unveiled an American action plan for AI that included calls to reduce perceived "woke" bias in AI models and promote the deployment of U.S. technology overseas. 

"The two camps are now being formed," said George Chen, partner at the Asia Group and co-chair of the digital practice. "China clearly wants to stick to the multilateral approach while the U.S. aims to build its own camp, highly focused on addressing the rise of China in the field of AI," he noted. He mentioned that China may attract participants through its Belt and Road Initiative, while the U.S. would likely garner support from allies such as Japan and Australia.

In his speech, Premier Li emphasized China's "AI plus" strategy to integrate technology across various industries and expressed willingness to assist other nations, especially in the Global South, a term that broadly refers to less developed economies outside the U.S. and Europe. 

Since 2022, the U.S. has sought to restrict China's access to advanced semiconductors for training AI models. Earlier this month, U.S. chipmaker Nvidia announced it was permitted to resume shipments of a less advanced H20 chip to China after a roughly three-month pause. However, China has been developing homegrown alternatives, which Nvidia CEO Jensen Huang praised as "formidable" during his recent trip to China. 

Former Google CEO Eric Schmidt met with Shanghai Party Secretary Chen Jining on Thursday in the city ahead of the AI conference, according to a city announcement. A representative for Schmidt declined to comment.

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