China’s AI Diplomacy in the Age of U.S. Unilateralism

Dr Imran Khalid

On July 26, 2025, amid the grandeur of Shanghai’s World Artificial Intelligence Conference and High-Level Meeting on AI Governance, China unveiled what may well become the defining moment in the transformation of global artificial intelligence – its AI Global Governance Action Plan and the bold proposal to create a World Artificial Intelligence Cooperation Organization, initially headquartered in Shanghai. These moves signal not just China’s confidence, but its willingness to steer AI toward a future grounded in consultation, joint construction, and shared benefit, especially for countries of the Global South.

As Premier Li Qiang delivered the opening address, he framed the current state of AI governance as “fragmented,” with wide differences in regulatory approaches and institutional frameworks across nations. China’s proposal to launch a centralized body reflects not hubris, but pragmatism: a conviction that to manage AI’s accelerating capabilities responsibly, the world needs a broad consensus and unified standards, not a patchwork of regional rules.

Premier Li’s critique of “technological monopolies” and a system in which AI becomes “an exclusive game for a few countries and companies” extends a direct but tactful rebuke of unilateral AI dominance. China positions itself as the antidote, offering openness and inclusion rather than exclusion. Chinese-made AI systems are not theoretical constructs – they are delivering tangible benefits across the world. In Myanmar, Japan, and Brazil, Chinese AI is already contributing new momentum in agriculture, education, and cultural exchange. From precision farming techniques in Myanmar to AI-driven digital classrooms in Brazil and health‑monitoring systems in neighboring Japan, Chinese AI is showing that smart technology can uplift societies in practical, meaningful ways.

While detailed reporting on these deployments remains limited in number of articles, it is widely reported that these partnerships align with China’s Global Development Initiative and global South solidarity strategy, embedding Chinese AI not as a tool of influence, but as an enabler of local development.

Parallel to its global outreach, China is doubling down on its domestic AI ecosystem. In response to escalating U.S. export controls on advanced Nvidia chipsets, local industry has mobilized: alliances like the Model‑Chip Ecosystem Innovation Alliance and Shanghai’s AI Committee were formed to integrate chips, LLM developers, and industry partners including Huawei, Biren, Metax, SenseTime, and more.

Huawei’s unveiling of its CloudMatrix 384 system, with 384 proprietary 910C chips and milestone‑beating performance in key benchmarks, signals that China is rapidly closing the gap with, or in some metrics even overtaking, U.S. AI powerhouses. Tencent’s Hunyuan3D World Model, Baidu’s “digital human” livestreaming avatars, and Alibaba’s Quark AI Glasses further demonstrate the creative breadth and commercialization readiness of Chinese AI innovation.

The newly proposed World AI Cooperation Organization is not just symbolic – it embodies China’s 13‑point AI strategy, which emphasizes open‑source ecosystems, UN‑led dialogue channels, safety frameworks, and equitable access, especially for developing countries.

China explicitly states that it is prepared to discuss arrangements with countries willing to join, inviting over 40 nations and organizations to participate in WAIC‑2025, including delegations from South Africa, Germany, Qatar, Russia, and South Korea. This indicates genuine openness, not coercion.

By tentatively proposing Shanghai as headquarters, China is seeking to leverage the city’s AI infrastructure and cosmopolitan character as an international hub for coordination and innovation, making the organization genuinely global in both form and function.

To counter criticisms that Chinese AI lacks transparency or fosters censorship, Beijing has doubled down on open-source AI licensing models, with companies like DeepSeek and Alibaba releasing large language models for global use. This step has drawn both acclaim and concern – but it undeniably reflects an intent to democratize AI, not hoard it behind walls. At WAIC, Premier Li underscored China’s desire to offer “more Chinese solutions” and “more Chinese wisdom” to the international community – words meant not to signal technological nationalism, but a global public good orientation.

China continues to lead in deployment scale, from smart cities to digital education platforms, giving it a practical edge in shaping AI use cases worldwide. Unlike models centered on competition or coercion, China’s emphasis on consultative multilateralism invites countries to participate rather than passively accept dictated rules. The proposed organization’s focus on the Global South signals a willingness to ensure that AI development benefits those often left behind in digital transformation. And as Western nations use tech controls and export restrictions to limit Chinese advancement, China is answering with self-reliance and cooperation, not retreat or isolation.

Of course, organizing a truly global AI governance body will require surmounting skepticism – about data privacy, algorithmic bias, political neutrality, and transparency. Critics warn that state-directed AI can embed internal ideology or censorship into exported models. The U.S. editorial press highlighted concerns about political alignment in Chinese models – even calling for caution in their deployment overseas.

Yet China’s willingness to open source key models and invite broad membership gives the proposed organization an advantage: accountability through participation, rather than distrust through exclusion.

The test lies in execution: whether the organization remains inclusive and respects local governance norms or becomes a tool for geopolitical leverage. But China’s current posture – promoting broad participation, offering development cooperation, and pushing for open‑source access – marks a meaningful departure from tech monopolism and signals a constructive path forward.

At a crossroads between fragmented regulatory silos and a competitive rush toward monopolistic dominance, the global community needs a bridge. China’s AI Global Governance Action Plan and its proposed World AI Cooperation Organization offer precisely that: a new global architecture grounded in consultation, shared values, and equitable access.

The question now is whether other nations will rise to the moment, engage in building a governance framework that truly reflects global consensus, and deliver AI development that benefits not just a handful of powerful economies, but humanity as a whole. If realized in good faith and with transparency, China has the opportunity to redefine global AI governance – not as a race for dominance, but as a cooperative journey toward shared prosperity. What Beijing has laid out in Shanghai is not just policy – it is an invitation. The world will decide whether to join.