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EconomyAI Showdown: China's Strategic Move to Outmaneuver U.S. Tech

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Amid an intensifying push for artificial intelligence (AI), China is investing heavily in the field after announcing national policies to outpace its rival and current AI forerunner, the United States. China is also ramping up the development of its own independent AI models and AI chips, leading to the prediction that it will also up the ante in its efforts to challenge the United States in generative AI.

According to media reports and industry sources on the 6th, China’s Ministry of Industry and Information Technology announced plans to establish national standards in at least 50 AI fields by 2026 in the recently announced Guidelines for the Construction of a Comprehensive Standardization System for the National AI Industry. The standards will cover key technologies across the AI supply chain, including those related to the training of large language models (LLM), the core technology for generative AI services like ChatGPT, as well as cyber security, industrial applications, computing systems, data centers, and semiconductors.

The Chinese government expects over 1,000 domestic companies to adopt standards to accelerate AI integration within the national economy. China plans to participate in the establishment of international AI standards. This initiative reflects the AI resolution proposed by China and adopted at the UN General Assembly on the 1st of this month. The resolution emphasizes equal rights to use AI technology between developed and developing countries.

The growth of China’s AI-related industries is undeniably rapid. According to a report by the United Nations World Intellectual Property Organization (WIPO), China filed the most patents for generative AI over the past decade, with over 38,000 applications. This surpasses the United States by six times. This also reflects. China’s determination to secure a leading position in the AI ecosystem.

Chinese companies are focusing on developing their own generative AI and AI semiconductors to avoid reliance on the United States. TikTok’s parent company ByteDance recently launched Doubao, a low-cost large AI model. It aims to target niche markets by offering lower service costs than those offered by big American tech companies.”

While the United States and China are leading in AI, South Korea is still in its infancy. The AI bill is not even being discussed, while platform companies are restricted by various regulations.

However, some believe that Chinese companies face challenges in catching up with big American tech companies in the foreseeable future due to constraints. Professor Lee Seong Yeob at Korea University’s Graduate School of Management of Technology, mentioned, “Generative AI development requires vast amounts of data, GPUs for AI training and inference, and specialized personnel. Due to China’s inherently closed policies, there are likely to be limitations in the pace of development.”

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