China has introduced a comprehensive global action plan to govern artificial intelligence (AI), coinciding with the United States’ recent initiative aimed at establishing its dominance in this rapidly evolving sector. This proposal was presented by Chinese Premier Li Qiang during the World AI Conference (WAIC) held in Shanghai, where technology leaders from over 40 nations gathered to discuss the future of AI.
During his address, Li highlighted the current fragmentation in global AI governance, emphasizing significant regulatory differences among nations. “Overall, global AI governance is still fragmented. Countries have great differences, particularly in terms of areas such as regulatory concepts, institutional rules,” he stated. He called for enhanced coordination to create a globally accepted AI governance framework as swiftly as possible.
This announcement came shortly after the Trump Administration unveiled its own 28-page AI action plan, which aims to eliminate bureaucratic obstacles and secure US leadership in the AI domain. While Li did not name the US directly, his comments reflected ongoing trade tensions, particularly the American restrictions on advanced semiconductor exports essential for AI development. “Key resources and capabilities are concentrated in a few countries and a few enterprises,” he warned. “If we engage in technological monopoly, controls and restrictions, AI will become an exclusive game for a small number of countries and enterprises.”
The competition over AI chips has intensified, becoming a crucial point in ongoing trade negotiations between the US and China. Recent discussions in Stockholm suggested some concessions, with the US lifting its ban on sales of a key Nvidia AI chip to China, while Beijing paused its antitrust investigation into American firm DuPont. On Sunday, Trump remarked from Scotland that the US is “very close to a deal with China,” although he did not provide further details. The current deadline for a trade agreement is set for August 12.
China’s commitment to its AI ambitions is evident, with more than 5,000 AI companies and an AI sector valued at 600 billion yuan (approximately $84 billion) as of April 2025. This growth is driven by substantial government and private sector investment. Between 2013 and 2023, state venture capital firms invested an estimated $209 billion into AI-related businesses, according to research from the National Bureau of Economic Research. In 2024, public sector spending on AI is projected to exceed 400 billion yuan (around $56 billion).
Despite these figures, the US still leads in private investment, with AI funding reaching $109.1 billion in 2024, significantly outpacing China’s $9.3 billion. Nonetheless, research from financial services firm Morgan Stanley indicates that China’s AI market could break even within the next few years, potentially delivering a 52% return on investment by 2030.
Calls for international collaboration on AI governance were echoed by Dr. Kao Kim Hourn, Secretary-General of ASEAN, who emphasized the need for robust governance to address threats like misinformation and cybersecurity risks. “These developments demand urgent, coordinated action from the international community to ensure AI serves human welfare and social good,” he stated, noting that AI adoption could increase ASEAN’s GDP by 10-18%.
At WAIC, former Google CEO Eric Schmidt urged both the US and China to collaborate on AI governance, asserting, “As the largest and most significant economic entities in the world, the United States and China should collaborate on these issues.” He emphasized the importance of maintaining global stability and ensuring human oversight in AI technology.
The conference, organized by the Artificial Intelligence International Institute, has become a significant platform for showcasing advancements in AI. Attendees explored over 3,000 exhibits, highlighting innovations from major Chinese tech firms, including Tencent and Alibaba, as well as notable US companies like Tesla and Amazon.
Innovative products unveiled at the event included new AI models from Tencent and the Hong Kong-based company SenseTime, along with Alibaba’s AI-powered smart glasses. The launch of the G1 boxing robot by Unitree and the introduction of companion robots by Shenzhen startup ZTE drew significant attention, showcasing the rapid advancements in China’s AI capabilities.
As both nations continue to navigate the complexities of AI governance, the future of artificial intelligence will likely hinge on their ability to cooperate and address the challenges presented by this transformative technology.
