Beyond the Chip Race: How China Is Winning AI’s Diplomatic Game

Ever since the Chinese AI company DeepSeek launched its latest model in January 2025, news has been spiralling around the AI race between the United States and China and how the latter is closing the technological gap. Yet, aside from competing for the advancement of computing technology, China is also enhancing its role in the field through another approach. On July 16, 2026, China and 29 other countries established the World Artificial Intelligence Cooperation Organization (WAICO), aiming to strengthen international cooperation and global governance on AI. Headquartered in Shanghai, this organisation now mainly comprises developing countries, including Russia, Brazil, and South Africa, who are also members of BRICS. In an official guideline of AI development titled “AI Plus Initiative”, the Chinese government plans to help developing countries develop AI and the related infrastructure. By doing so, it can expand the global adoption of Chinese AI models and even increase global usage of other Chinese technological products. 

Compared to the US’s AI models, most Chinese AI models are less costly and open-weight, which means they can be modified and adapted to the users’ needs. This provides a strong incentive for developing countries to choose Chinese AI models, because they get to develop AI models suited for their local contexts with less capital required. China’s push for AI model adoption signifies its growing power in setting standards for AI. With new models being developed rapidly, global frameworks and norms on this technology certainly require constant negotiation among states. Hence, if more countries follow China’s lead in setting the agenda, the country could become a global leader in this latest technology of the century and shape the rules that govern AI according to its own values. 

Whether this situation will continue remains unclear, as the Chinese government has also begun to consider making some AI models closed-source. Still, with the current US government exiting many multilateral organisations, China’s growing presence in AI governance will be an important development worth keeping an eye on in the future.