What's happened
As of late July 2025, the World Artificial Intelligence Conference in Shanghai highlighted China's call for a unified, inclusive global AI governance framework emphasizing openness and cooperation, contrasting sharply with the US's deregulation-focused AI Action Plan under President Donald Trump. The US plan prioritizes AI dominance through deregulation, infrastructure expansion, and export controls, while China promotes shared development, especially with developing countries. Experts warn geopolitical tensions and techno-nationalism hinder global AI safety collaboration.
What's behind the headline?
Geopolitical Tech Rivalry Shapes AI Governance
The US and China are locked in a strategic contest over AI leadership, with each nation advancing divergent governance philosophies that reflect broader geopolitical ambitions. China's push for a global, inclusive AI governance framework aims to counterbalance US-led alliances that exclude it, emphasizing openness, shared benefits, and cooperation with developing countries. This approach seeks legitimacy and influence in shaping AI's future beyond Western-centric models.
Conversely, the US under President Trump has adopted a techno-nationalist stance, prioritizing deregulation to accelerate innovation domestically while restricting technology exports to China. The US AI Action Plan explicitly frames AI supremacy as a national security imperative, sidelining multilateral cooperation in favor of an "America First" policy.
Fragmentation Risks and Global Stakes
This bifurcation risks fragmenting global AI governance into competing spheres of trust, undermining efforts to address shared challenges such as AI safety, misinformation, and ethical deployment. Experts like Geoffrey Hinton and Eric Schmidt underscore the urgent need for international dialogue to prevent AI from becoming a destabilizing force, drawing parallels to Cold War-era nuclear cooperation.
Talent Wars and Industry Dynamics
The AI talent war intensifies as Big Tech firms in the US and China aggressively recruit elite researchers, often offering unprecedented compensation packages. However, some startups like Anthropic resist this trend, emphasizing mission-driven retention over salary escalation. This dynamic reflects broader tensions between commercial imperatives and ethical stewardship in AI development.
Forecast and Impact
Absent meaningful US-China collaboration, AI governance will likely remain fragmented, increasing risks of misuse and geopolitical conflict. Developing countries face exclusion from decision-making, potentially exacerbating global inequalities. The trajectory suggests continued competition, with incremental cooperation possible only through sustained diplomatic engagement and mutual trust-building.
For readers, these developments signal that AI's evolution is not merely a technological issue but a geopolitical contest shaping global norms, security, and economic power, with implications for innovation access and ethical standards worldwide.
What the papers say
The South China Morning Post reports on Premier Li Qiang's keynote at the World Artificial Intelligence Conference, highlighting China's call for a "global AI governance framework" that is inclusive and open, contrasting with the US's approach. Li warned against AI becoming an "exclusive game" controlled by a few nations, emphasizing cooperation with developing countries and open-source development. The article notes China's efforts to position itself as a partner for the Global South and its pushback against US export restrictions.
Business Insider UK provides insight into the US side, detailing President Donald Trump's "AI Action Plan," which focuses on deregulation, infrastructure expansion, and maintaining American AI dominance. The plan explicitly aims to counter Chinese influence and promotes an "America First" policy. The article also covers the intense competition for AI talent, with companies like Meta offering massive pay packages to recruit researchers, while startups like Anthropic emphasize mission-driven retention over salary wars.
TechCrunch critiques the US executive order banning "woke AI" and ideological bias in government AI contracts, highlighting concerns about vague definitions of neutrality and the potential chilling effect on developers. It contrasts this with China's more collaborative rhetoric, underscoring the ideological divide shaping AI policy.
The Guardian and The Japan Times contextualize the broader geopolitical stakes, noting the US-China tech rivalry and the strategic importance of AI as a growth engine and security concern. Nobel laureate Geoffrey Hinton and former Google CEO Eric Schmidt, quoted in the South China Morning Post, stress the need for international cooperation despite political challenges.
Together, these sources illustrate a complex, high-stakes contest between two global powers with competing visions for AI's future, underscored by technological innovation, governance debates, and talent competition.
How we got here
The escalating US-China rivalry in AI governance and innovation has culminated in competing strategies unveiled in July 2025. China hosted the World Artificial Intelligence Conference in Shanghai, advocating for multilateral AI governance and open-source development. Meanwhile, the US released an AI Action Plan emphasizing deregulation, national security, and maintaining technological supremacy, reflecting broader geopolitical and economic tensions between the two powers.
Go deeper
- How does China's AI governance proposal differ from the US approach?
- What are the risks of fragmented global AI governance?
- How is the AI talent war affecting startups and big tech companies?
Common question
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Why is China calling for global AI rules now?
As AI technology advances rapidly, countries are debating how to manage its risks and benefits. Recently, China has stepped forward to advocate for international AI governance, emphasizing safety, collaboration, and shared standards. But why now? What’s driving China’s push for global AI rules, and what could this mean for the future of AI development worldwide? Below, we explore the key questions surrounding this important move and what it signals for global AI efforts.
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What is China's stance on global AI regulation?
As AI technology advances rapidly, countries are taking different approaches to regulate and govern its development. China has recently called for international cooperation on AI safety and governance, emphasizing the need for a unified global framework. But what exactly is China's position, and how does it compare to other nations' strategies? Below, we explore key questions about China's approach to AI regulation and the broader landscape of international AI governance.
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How Are China and the US Differing in AI Regulation?
The global race for AI leadership is marked by stark differences between China and the United States. China advocates for open, inclusive AI governance, emphasizing international cooperation and shared development. Meanwhile, the US pursues deregulation and strategic dominance, focusing on maintaining technological superiority. These contrasting approaches raise questions about global AI safety, security, and cooperation. Below, we explore the key differences and what they mean for the future of AI worldwide.
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Why Are the US and China Competing So Fiercely in AI Development?
The race for AI dominance between the US and China is shaping the future of technology, security, and global influence. Both nations are pursuing very different strategies—while the US emphasizes deregulation and innovation, China advocates for open, inclusive governance. This fierce competition raises questions about the impact on global safety, innovation, and international cooperation. Below, we explore the key reasons behind this rivalry and what it means for the world.
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What Are the Biggest Global Tensions in Tech and Politics Today?
In 2025, the world is witnessing intense conflicts in technology and politics, especially between major powers like the US and China. These tensions influence global innovation, security, and diplomacy, raising questions about the future of AI, international cooperation, and regional stability. Below, we explore the key issues shaping today's geopolitical landscape and what they mean for everyday people.
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