By Paul Jouvenet, essayist and consultant in international affairs. Eurasia Business News, January 25, 2025. Article n°1395.

The competition between the United States and China in artificial intelligence (AI) is intensifying, characterized by strategic maneuvers, technological advancements, and geopolitical implications. As both nations strive for dominance in this critical field, their approaches reveal significant differences that shape the global landscape of AI development.

State-Driven Strategy: China’s approach to AI development is heavily influenced by centralized planning and state funding. The government actively invests in specific AI projects and establishes national computing centers to bolster its capabilities. This contrasts with the U.S. model, which relies more on private companies and open-source innovations, although recent U.S. policies have started to emphasize government support.

Technological Advancements: Chinese AI models are rapidly closing the performance gap with their U.S. counterparts. Recent developments from Chinese labs, such as DeepSeek, have produced advanced AI systems that rival those of leading American companies like OpenAI. This shift has led some experts to characterize the competition as an “AI war,” highlighting China’s significant advancements in AI research and application.

Self-Sufficiency Initiatives: In response to U.S. export controls that limit access to critical technologies like advanced semiconductors, China is accelerating efforts towards self-sufficiency in AI components. This includes ramping up domestic chip production and investing in alternative computing resources, despite facing challenges due to reliance on foreign technology.

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Resource Allocation and Competition: Within China, there is fierce competition among numerous AI startups, leading to concerns about resource wastage. However, this environment also increases the likelihood of breakthrough innovations emerging from these diverse initiatives. China’s strategy resembles its approach in electric vehicles, where a multitude of companies has led to both successes and inefficiencies.

Geopolitical Context: The U.S.-China rivalry over AI is framed within broader national security concerns, with both nations viewing advancements in AI as crucial for military and economic dominance. The U.S. has implemented “chokepoint” tactics to hinder China’s access to advanced technologies, while China seeks to leverage its vast pool of researchers and state support to maintain momentum in its AI development.

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Global Influence Strategy: China is also working to expand its influence in global AI markets by offering subsidized access to its technology and building local data centers in developing countries. This strategy aims to ensure that nations adopting Chinese AI platforms become reliant on them for future technological needs.

China’s multifaceted approach combines state support, competitive innovation, and strategic global outreach as it seeks to challenge U.S. leadership in artificial intelligence amid ongoing geopolitical tensions. Beijing seeks AI supremacy to enforce its status as a new global superpower.

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© Copyright 2025 – Eurasia Business News. Article no. 1395.