Speaking at the World Artificial Intelligence Conference in Shanghai, Chinese President Xi Jinping outlined a new vision centered on international cooperation in artificial intelligence. According to experts, Beijing’s approach, which combines technological capabilities, cost advantages and diplomatic initiatives, could usher in a new era of competition that threatens the European Union’s claim to regulatory leadership.
China is seeking not only to expand its technological capabilities in AI but also to play a more prominent role in global digital governance. The approach unveiled at the World Artificial Intelligence Conference in Shanghai on July 17 is seen as part of Beijing’s broader strategy to extend its AI policies and governance model internationally.
Speaking at the conference, President Xi Jinping argued that AI should be developed on the basis of international cooperation, presenting China’s technological advances in the field as part of a broader political vision.
New Shanghai-based organization
Representatives from 29 countries signed a founding document at the conference establishing the World AI Cooperation Organization, which will be headquartered in Shanghai.
Beijing has said it aims to provide open, accessible and affordable AI solutions, particularly to developing countries. The initiative is seen as an extension of China’s efforts to promote its approach to digital governance internationally.
Competition extends beyond technology
China’s AI strategy is seen as resembling the model Beijing previously adopted in solar panels, batteries and electric vehicles. Rather than focusing solely on developing the most advanced technology, China is seeking to achieve widespread adoption in global markets by offering high performance at a lower cost.
Models developed by Chinese companies such as DeepSeek, Moonshot and Zhipu AI, which are reported to offer performance close to that of their U.S. competitors while providing cost advantages, are considered key elements of this strategy.
Analysts point out that for many countries, the balance between cost and performance could prove more decisive than systems offering the highest possible technical capabilities.
Europe’s regulatory advantage under pressure
The European Union has long sought to establish itself as a global standard-setter through ethical rules and regulations governing AI. However, analysts say China has begun to challenge this advantage by combining competitive technology products with state-backed diplomatic initiatives.
China’s approach differs significantly from the regulatory model adopted by democratic countries because of its extensive state control and censorship mechanisms. At the same time, the decline of an era in which digital platforms largely regulated themselves is seen as strengthening Beijing’s arguments for a more state-driven approach.
Europe caught between two models
Experts say Europe is increasingly seeking to balance between two distinct AI models represented by the United States and China.
The United States is seen as leveraging its technological dominance through legal frameworks applied globally and mechanisms that can restrict access to critical technologies. China, meanwhile, is seeking to expand its influence through technical cooperation and multilateral diplomacy.
This is creating a new competitive environment for the European Union, analysts say.
Rules lose influence without industrial strength
Experts emphasize that establishing a regulatory framework alone is not enough to exert influence internationally and must be backed by strong industrial and technological capabilities.
In this context, the European Union is seen as lacking both the technological dominance of the United States and the appeal China has among developing countries. Without stronger industrial investment, analysts warn, European rules could ultimately remain effective primarily within the bloc’s own borders.
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