background imageChloe Cushman

Who is winning in AI—China or America?

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on The Economist or enjoy below:

🗞️ Driving the news: As the global AI race intensifies, the United States and China are advancing distinct visions of technological leadership
While the U.S. dominates in AI investment, model development, and advanced computing, China is rapidly scaling up deployment and exports of its results-focused, values-free AI governance model
The divergence highlights a growing geopolitical divide not just in technological capabilities but in ideological approaches to AI oversight

🔭 The context: Coined during the 1990s, the “California effect” described how U.S. regulatory leadership in areas like emissions could elevate global standards
In AI, a similar dynamic is playing out—but China is offering a competing model, prioritising efficiency, surveillance, and state control over transparency or democratic safeguards
Backed by massive state investment, China’s “AI+” initiatives span sectors from agriculture to manufacturing, while the U.S. maintains its edge through private innovation, particularly in frontier research and AGI (Artificial General Intelligence)

🌍 Why it matters for the planet: AI’s deployment at scale will influence climate modelling, energy efficiency, and resource optimisation — but also raises questions about surveillance, data ethics, and governance
China’s model, which downplays values-based constraints, could appeal to regimes seeking rapid results without democratic oversight
The global contest over AI governance is thus also a contest over the future ethical architecture of technology worldwide.

⏭️ What's next: The U.S. continues to strengthen its AI ecosystem through export controls and public-private collaboration, maintaining a lead in compute capacity and chip technology
China is doubling down on open-source platforms, infrastructure buildout, and domestic chip production
With both countries influencing multilateral frameworks and offering AI tools to the Global South, the coming years will determine whether the world coalesces around democratic AI norms—or fragments into competing tech spheres

💬 One quote: “China is exporting a vision of AI governance that prioritises results over rights—offering a scalable, values-free alternative to Western models,” notes The Economist

📈 One stat: In 2024, the U.S. produced 40 of the world’s most significant AI models, while China produced 15—yet China leads in total AI-related publications and patents.

See on illuminem's Data Hub™ the sustainability performance of AI companies like OpenAI, NVIDIA, and DeepSeek

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