China’s AI Strategy

In July 2025, China held AI Summit in Shanghai. It was called the World AI Conference. It discussed all the promises and pitfalls of the current state of AI in China. It brought to the notice of the world the chasm between the Chinese strategy and the US strategy. It was the first major gathering since the introduction of DeepSeek, the breakthrough reasoning model. Chinese market is becoming competitive both at home and is vying with Silicon Valley internationally. There is government support and open-source eco-system. Moonshot’s open-source model excels at coding tasks. Though highly competitive at present, it is to be seen how many firms survive and sustain. Already, the firms have released 1500 large AI models and there are 5000 AI companies.

There are issues of interoperability when hundereds of AI agents are being launched. Another issue is the developer-friendly nature of different LLMs. in terms of building apps. What is the nature of humanoids — are they tools or companions?

US has declared that it will do whatever it can to take the lead in the world of AI. US has started the AI race and expects to win it. China wants that AI should not be a monopoly of a handful countries and enterprises. China wants global solidarity in the AI area. However. there is gap between what the world leaders say and do.

It is also a moot point how many countries would like to align with China. China is promoting its low-cost AI products.

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