A Strategic Contrast Emerges as China Proposes Global AI Governance to Counter U.S. Deregulation

26 July 2025

Li Qiang on July 26.Photographer: Qilai Shen/Bloomberg

China’s Premier Li Qiang used the opening of the World Artificial Intelligence Conference in Shanghai to launch a major initiative aimed at addressing what he called AI fragmentation and monopolistic dominance of the technology. Li warned that artificial intelligence innovation risks being confined to a few nations and companies unless the global community adopts a unified governance framework.

At the conference Li proposed the creation of an international organization headquartered in Shanghai that would oversee AI development, infrastructure, ethics, and safety standards through inclusive cooperation involving governments, industry, academia, and particularly countries of the Global South. The Chinese foreign ministry backed the outline with a 13‑point action plan emphasizing open‑source sharing, capacity building, and multilateral oversight.

China framed its moves as a direct contrast to the United States, which has recently unveiled a deregulation‑oriented "Winning the AI Race" strategy focused on accelerating domestic innovation by cutting red tape, building compute infrastructure, and expanding AI exports to allies. This intensifies the ongoing tech rivalry, with Beijing emphasizing transparency and equity while Washington prioritizes speed and competitive edge.

Despite Western export restrictions on advanced chips and concerns about technology transfer, Chinese AI firms like DeepSeek, Tencent, Huawei, and Alibaba remain central to the race. At least 800 companies are participating in Shanghai’s conference, unveiling over 3,000 innovations including large‑language models, robotics, and enterprise tools. DeepSeek’s low‑cost, high‑performance LLMs praised even by Nvidia CEO Jensen Huang are seen as technically competitive alternatives to U.S. platforms.

Li highlighted systemic issues hindering AI progress, notably semiconductor shortages and restrictions on talent movement. He reaffirmed President Xi’s vision for self‑reliant technological development as part of China’s broader industrial ambitions defined by its “Made in China 2025” and state‑backed frontier innovation plans.

While China pushes for cooperation and governance, U.S. regulators continue tightening export controls particularly on Nvidia chips and advanced technology equipment. These measures reflect concern that unrestricted AI advances could empower strategic adversaries. Li did not mention any country by name, but his remarks clearly referenced U.S. constraints on China’s tech sector.

China’s proposal marks a strategic shift from earlier messaging. Rather than assert unilateral dominance, Beijing wants to position itself as a convener of global AI norms and defender of open innovation, seeking buy‑in from emerging economies wary of Western technology dominance.

Li’s comments also spotlight the growing urgency surrounding the risks of AI including job displacement, data privacy, algorithmic bias, and digital sovereignty. A coordinated governance body, China argues, would help regulate these risks while democratizing access to AI resources and standards for developing nations.

While China’s plan remains largely aspirational lacking formal structure or implementation timeline it represents a provocative diplomatic gambit. It signals a willingness to fill a governance void that the U.S. and Europe have left largely unaddressed. Whether other countries outside China will sign on remains uncertain, but many global AI stakeholders are watching with interest as fault lines between open standards and competitive withdrawal continue to deepen.