China Intensifying the AI Race with the USA

China is sharply ramping up its efforts in the global competition with the USA for leadership in the field of artificial intelligence. Beijing plans to invest about 2 trillion yuan (nearly $295 billion) in building a network of state-of-the-art data centers across the country. The project aims to provide China with its own computing power for AI development and reduce its dependence on American technology.

China is also banking on local manufacturers. At least 80% of the equipment, including AI chips, is planned to be purchased from Chinese companies, first of all Huawei. This will make it possible to exclude American giants Nvidia and AMD from government projects.

Amid the escalating technological standoff with the USA, China is imposing new restrictions on AI specialists. Startup founders, leading researchers, and company executives must obtain government permission to travel abroad. Unofficially, this is attributed to fears that valuable specialists could be poached by American companies or research centers.

Beijing views artificial intelligence as a strategic sector on which the country’s economic and technological advantage will depend. That is why China is simultaneously investing record amounts in infrastructure and trying to retain its best professionals within the country, intensifying competition with the USA for the future of AI.