U.S. and China Contest Global AI Governance and Standards

The United States and China have shifted their competition over artificial intelligence from a purely technological race to a struggle for global governance and digital standards. The United States government seeks to cement its dominance through deregulation and the implementation of the American AI Technology Stack. To maintain market access while limiting China's capabilities, the U.S. government previously allowed companies like Nvidia and AMD to sell modified chips in China, provided 15% of derived revenues were paid to the U.S. government.

In response, the Government of China is pursuing AI self-sufficiency and expanding its influence in the Global South via the Digital Silk Road. To position China as a leader in setting global rules, Premier Li Qiang proposed the creation of the World Artificial Intelligence Cooperation Organization in July.

U.S. export controls on advanced semiconductors have accelerated China's domestic industrial policy. Firms such as Huawei Inc. and Semiconductor Manufacturing International Corporation are developing competitive AI chips and ramping up 7nm production to reduce reliance on foreign technology.