Chinese Premier Li Qiang has proposed a comprehensive plan for global governance of artificial intelligence (AI), just days after the United States revealed its strategy to enhance its leadership in the sector. This announcement was made during the annual World AI Conference (WAIC), held in Shanghai, where over 800 tech companies from more than 40 nations convened to discuss the future of AI technology and regulation.
In his address on Saturday, Li emphasized the need for a unified approach to AI governance, highlighting that existing frameworks are fragmented and vary significantly across nations. “Overall, global AI governance is still fragmented. Countries have great differences, particularly in terms of regulatory concepts and institutional rules,” said Li. He called for enhanced coordination to create a global governance framework that reflects broad consensus among nations.
This proposal from China comes in the wake of the Trump administration’s recent unveiling of a 28-page action plan that aims to eliminate bureaucratic hurdles and solidify US dominance in the AI domain. While Li did not explicitly mention the United States in his remarks, he referenced the ongoing trade tensions, including US restrictions on semiconductor exports to China, which are critical for AI development. “Key resources and capabilities are concentrated in a few countries and a few enterprises,” he noted, warning that technological monopolies could limit AI’s benefits to a select few.
The competition for AI supremacy has intensified, with AI chips becoming pivotal in trade negotiations between the two superpowers. Recent meetings in Stockholm revealed some concessions, such as the US lifting its ban on sales of a crucial Nvidia AI chip to China and Beijing suspending its antitrust investigation into the American chemical company DuPont. Speaking from Scotland, Trump stated that the US is “very close to a deal with China,” though he did not elaborate on details, with the current deadline for an agreement set for August 12, 2025.
China’s AI landscape is rapidly evolving, boasting over 5,000 AI companies and a core industry valued at around 600 billion yuan (approximately $84 billion) as of April 2025. This growth is propelled by substantial investment from both the government and private sectors. Between 2013 and 2023, state venture capital firms are estimated to have invested $209 billion in AI-related ventures, according to research from the National Bureau of Economic Research. This year alone, public sector spending on AI is projected to exceed 400 billion yuan (about $56 billion).
While China’s investment figures are still smaller compared to the US—where private AI investment reached $109.1 billion in 2024, roughly twelve times China’s $9.3 billion—the rapid advancements in China’s AI sector are becoming increasingly evident. Since 2017, China has outpaced other countries in publishing patents for generative AI technologies, as reported by the World Intellectual Property Organization.
A notable instance of China’s technical capabilities emerged with the launch of the AI model R1 from the startup DeepSeek, which outperformed models from major companies such as Meta and Anthropic. Developed for a mere $5.6 million, this model demonstrated China’s growing prowess in AI technology. Similarly, the recent introduction of the Kimi K2 model by the startup Moonshot has also garnered attention for its competitive performance at a lower cost.
Looking ahead, the pace of innovation in the Chinese AI market is expected to yield significant returns. Research from Morgan Stanley indicates that the market may break even within the next few years, potentially delivering a 52% return on investment by 2030.
Dr. Kao Kim Hourn, Secretary-General of ASEAN, also spoke at WAIC, advocating for robust governance of AI to address potential risks such as misinformation and cybersecurity threats. He emphasized the need for urgent and coordinated international action to ensure that AI technologies serve human welfare and contribute positively to societal development. AI implementation within ASEAN, he noted, could boost the region’s GDP by 10-18%.
Former Google CEO Eric Schmidt reiterated the importance of collaboration between the US and China. “As the largest and most significant economic entities in the world, the United States and China should collaborate on these issues,” he stated at WAIC. “We have a vested interest in maintaining global stability and ensuring human control over these technologies.”
The WAIC, which has been held in Shanghai since its inception in 2018, serves as a vital platform for showcasing advancements in AI technology. This year’s event featured over 3,000 exhibits, including new AI models from major Chinese firms such as Tencent and Alibaba, as well as innovations from international companies like Tesla and Amazon.
Attendees explored a range of new products, including AI-powered smart glasses, advanced robotics, and even humanoid robots capable of playing mahjong. The presence of these technologies highlights China’s ambition to take a leading role in the global AI landscape, further underscoring the competitive dynamics between China and the US.
