Chinese President Xi Jinping on July 17, 2026, positioned Beijing as a global leader in AI governance, unveiling plans for a coalition to promote open-source technology and challenge U.S. influence, while warning against new historical injustices
in AI access.
China’s AI Coalition: A Global Public Good?
At the World AI Conference, Xi announced the establishment of the World AI Cooperation Organisation (WAICO), which signed up 29 member countries on Thursday, including blocs like BRICS, ASEAN, and the African Union. The initiative aims to provide developing nations with AI training and resources, promising 5,000 opportunities over five years for AI training and seminar programs,
according to CNBC. Xi framed this as a response to new historical injustices
from unequal AI access, stating, China is willing to work with all parties to seize and address the opportunities and challenges of artificial intelligence development with a more open attitude.
The coalition’s focus on open-source AI models aligns with Beijing’s broader strategy to bypass U.S. tech dominance. Chinese startups like Moonshot AI have already unveiled large open-weight models, such as Kimi K3, which the Reuters reported as the world’s largest open AI model by parameter count.
This contrasts with U.S. companies like OpenAI and Anthropic, which rely on proprietary systems, though the U.S. government recently pulled Anthropic’s frontier-class AI models due to security concerns.
Xi’s Warning: A Challenge to U.S. Leadership
The U.S. has implemented export controls since 2019, including placing Huawei on the Commerce Department’s Entity List. The Biden administration further restricted China’s access to advanced chips in 2022, citing national security risks. Reuters reported that Nvidia’s market share in China has plummeted, with the company stating it was effectively foreclosed
from competing in the data center market. Xi’s speech, however, framed these restrictions as a barrier to global equity.
The Global South’s Role in Shaping AI
Xi emphasized that the Global South should have a symphony of international cooperation
in AI development, rather than a solo performance
by any single country. The WAICO initiative includes plans to establish AI cooperation centers with BRICS, ASEAN, and the African Union, as Reuters detailed.
Experts suggest the move reflects Beijing’s effort to consolidate its geopolitical clout. George Chen, Chair in Digital Practice at The Asia Group, told Reuters, Xi’s message is clear: China is not going to follow anyone on both AI technology and standards. Instead, China is going to lead the world in both aspects.
However, the U.S. has pushed back, with officials arguing that excessive regulation could stifle innovation, as WSJ reported.
What Comes Next for U.S.-China AI Rivalry?
The timing of Xi’s speech underscores the escalating U.S.-China competition over AI. The two nations are preparing for their first government-level AI talks under the Trump administration, with the World AI Conference serving as an early test of their competing visions. Reuters noted that the event has shifted from an industry showcase to a diplomatic battleground.
Key questions remain: Will the WAICO initiative gain traction among developing nations, or will U.S. allies resist Beijing’s push? How will the U.S. respond to China’s open-source models, which could democratize AI access but also raise security concerns? As WSJ observed, Xi’s speech was both a declaration of leadership and a warning—China is not just competing in AI, but redefining its global governance.
