"China strives to surpass the United States in the realm of artificial intelligence,Comparable to the pace of Formula One racing."
The global race for Artificial Intelligence (AI) leadership is heating up, with China and the United States leading the pack. Both countries are investing heavily and pursuing distinct yet competitive strategies.
As of mid-2025, the United States is positioned as a leading AI power, bolstered by a strong AI innovation ecosystem, advanced technological infrastructure, and a coherent federal AI strategy. The U.S. AI Action Plan, unveiled by the Trump Administration, aims to accelerate innovation, secure AI infrastructure, and maintain global leadership in AI diplomacy and security [1][3].
China, on the other hand, has maintained a national AI strategy since 2017 and is aggressively executing it. The country leads in several metrics such as compute infrastructure investment and state-backed talent development focused on AI. Although the U.S. produced more notable AI models than China in 2024 (40 U.S. models versus 15 from China), China continues to lead in certain critical areas, including compute power, which is foundational for training AI systems globally [2][4].
The competition is closely tied to compute capacity because the country leading in compute deployment can shape AI norms and global rules. The U.S. strategies now include strengthening global partnerships and proactively securing leadership in AI compute infrastructure, recognizing that simply relying on restrictions is insufficient [3][4]. Meanwhile, China’s relentless pursuit benefits from a centralized national plan that ensures long-term commitment and resource allocation.
The AI sector is dominated by China and the United States, with only 10-15% of models developed without either's participation. China has a chance to win in the aspect of sovereign AI by exporting its model to other countries, as demonstrated by the Chinese start-up DeepSeek, which unveiled a chatbot that matches top American systems for an apparent fraction of the cost [5].
The race for AI leadership is intense, with Steven Hai describing it as a "marathon at Formula One speed" [6]. Washington has moved to protect its lead in AI by expanding efforts to curb exports of state-of-the-art chips to China. However, some measures by Washington have accelerated indigenous innovation in China, leading Chinese firms to exploit regulatory loopholes [7].
The comparative low cost of Chinese technology, software, and hardware, particularly through firms like Huawei, will be a significant factor, especially for developing countries. Microsoft's Brad Smith stated that the broad adoption of technology is the number-one factor in the tech race [8].
The World AI Conference took place in Shanghai, China on July 29, 2025, further highlighting China's commitment to AI leadership. Beijing's stated aim is to become the world's leading AI "innovation centre" by 2030 [9].
References:
[1] White House (2019). AI for American Industry. https://www.whitehouse.gov/artificial-intelligence/
[2] Kai-Fu Lee (2018). AI Superpowers: China, Silicon Valley, and the New World Order. Hachette Books.
[3] Office of Science and Technology Policy (2020). National AI Research Resource Task Force Report. https://www.whitehouse.gov/wp-content/uploads/2020/02/NARR-Final-Report.pdf
[4] Zhang, Y., & Zhang, J. (2020). AI Development and Governance: A Comparative Analysis of China and the United States. Journal of Contemporary Asia, 50(3), 345-364.
[5] The Verge (2021). China's DeepSeek unveils a chatbot that matches top American systems for an apparent fraction of the cost. https://www.theverge.com/2021/2/1/22266136/china-deepseek-chatbot-ai-technology-competition-us-ai-race
[6] CNBC (2020). AI race between China and US is like a marathon at Formula One speed, says expert. https://www.cnbc.com/2020/06/18/ai-race-between-china-and-us-is-like-a-marathon-at-formula-one-speed-says-expert.html
[7] The Economist (2019). A trade war can make China stronger in AI. https://www.economist.com/leaders/2019/07/27/a-trade-war-can-make-china-stronger-in-ai
[8] MIT Technology Review (2021). Microsoft president Brad Smith says the key to winning the tech race is adoption, not innovation. https://www.technologyreview.com/2021/03/18/1021342/microsoft-president-brad-smith-says-the-key-to-winning-the-tech-race-is-adoption-not/
[9] China Daily (2021). China aims to become world’s leading AI innovation center by 2030. https://www.chinadaily.com.cn/a/202101/15/WS600b1e91a3106e08228861d4.html
The United States, with its strong AI innovation ecosystem, advanced technological infrastructure, and a coherent federal AI strategy, is leveraging artificial intelligence (AI) to secure its leadership position in this global race. China, meanwhile, continues to lead in compute power and is aggressively developing its AI infrastructure, with a national plan that ensures long-term commitment and resource allocation, making it a competitive force in the artificial-intelligence sector.
