China’s Xi Jinping launches new AI alliance: What is it?

Key Points:

• Chinese President Xi Jinping called for international cooperation on artificial intelligence (AI) at the World Artificial Intelligence Conference in Shanghai, emphasizing that AI development should be a collective effort rather than dominated by any single country, implicitly criticizing the United States.
• China launched the World Artificial Intelligence Cooperation Organisation (WAICO), an inter-governmental alliance of 29 countries, including many from the Global South, aiming to promote AI cooperation and shape global AI regulation in a way that supports Beijing's leadership in the technology.
• The US and China are engaged in a strategic competition over AI and semiconductor technology, with the US imposing export restrictions on China citing national security concerns, while China retaliates with export bans on critical minerals and dual-use technologies.
• China leverages its advantages in data center capacity, rare earth mineral production, and abundant electricity supply to strengthen its AI ecosystem, positioning itself as a global AI power despite lagging behind the US in cutting-edge semiconductor access.
• Beijing’s push for WAICO and global AI governance reflects its strategy to influence international AI policy frameworks, especially at the United Nations, and to advance a state-centric model of technology governance supported by its Global South allies.