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China proposes to establish an international AI watchdog

Proposal stands in contrast to the unilateral American approach to regulation
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Image: Shutterstock via Dennis

30 July 2025

Amid rising tensions between the United States and China, China has proposed a global framework for the governance of artificial intelligence (AI), in stark contrast to the unilateral approach of the US. Premier Li Qiang highlighted the fragmented nature of current AI governance and emphasised the need for international consensus on a common framework during his speech at the global AI conference in Shanghai.

Li’s call for cooperation comes shortly after the US announced its own plan to achieve dominance in the rapidly growing AI sector. Although Li did not mention the US directly, his remarks implicitly addressed the ongoing trade disputes between the two superpowers, including restrictions on the export of advanced semiconductors that are crucial for the development and training of AI.

The race for AI supremacy has intensified, with both nations competing for technological leadership. China, home to more than 5,000 AI companies, has heavily invested in the sector, with an estimated $209 billion (€180 billion) in government venture capital between 2013 and 2023. While private US investments still outpace Chinese spending, China’s rapid progress is clearly visible in the proliferation of generative AI patents and the rise of competing start-ups such as DeepSeek and Moonshot.

 

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This progress has raised concerns about the potential risks of AI, such as misinformation, deepfakes, and cybersecurity threats. ASEAN Secretary-General Kao Kim Hourn emphasised the importance of strong governance to mitigate these dangers, while former Google CEO Eric Schmidt called for cooperation between the US and China to ensure a stable and peaceful future in which humans retain control over AI technologies.

The conference brought together leading figures from the field, including computer scientist Geoffrey Hinton, regarded as the ‘godfather of AI,’ and French researcher Anne Bouverot, underscoring the global significance of these discussions.

Business AM

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