China Unveils AI Action Plan, Sets Up Tech Contest With The US

China has officially entered the next phase of its artificial intelligence (AI) strategy, unveiling an ambitious AI action plan that not only seeks domestic advancement but also emphasises global governance and multilateral cooperation.

Premier Li Qiang outlined the plan on July 27 at the 2025 World AI Conference and High-Level Meeting on Global AI Governance in Shanghai, marking a significant step in the escalating tech rivalry between China and the United States.

This announcement comes just a week after the United States released its own AI action plan, signaling intensifying competition between the world’s two largest economies in shaping the rules, standards, and leadership of AI technology.

What is China’s dual commitment to AI innovation and governance?

Premier Li’s speech highlighted China’s dual commitment to rapid innovation and responsible governance. He acknowledged breakthroughs in large language models, multimodal AI, and embodied AI, which are transforming the sector into a driver of economic growth.

However, he cautioned against unchecked development, stressing that AI must remain a human-controlled tool. “No matter how far technology advances, it must remain a tool to be harnessed and controlled by humans,” he stated.

To ensure equitable growth and mitigate risks, Li proposed the creation of a global AI cooperation organisation. This body, he said, could facilitate dialogue, policy alignment, standard-setting, and technical collaboration among nations.

He envisioned it as a neutral platform where both developed and developing countries could work together to promote responsible innovation.

Importantly, Li framed AI as a global public good, advocating for its benefits to be shared across borders, particularly with countries in the Global South. He promised Chinese support in AI capacity-building, including sharing development experience, technologies, and open-source tools with other nations.

Will China’s AI agenda include openness and collaboration?

China’s AI governance agenda also includes a commitment to openness and collaboration. Premier Li expressed willingness to engage in joint research initiatives, foster open-source AI ecosystems, and work toward inclusive international standards.

A formal action plan on global AI governance was released at the conference, although detailed frameworks are expected to evolve through future diplomatic and technical discussions.

Beijing’s push for a global AI governance model positions it as a proactive stakeholder in shaping international norms. However, the move also raises strategic questions for the West, particularly regarding standard-setting, influence over Global South nations, and open-source collaboration in an increasingly fractured tech landscape.

How will China’s AI Agenda Challenge the US?

As AI becomes a defining technology of the 21st century, China’s approach — combining rapid development with global outreach and governance advocacy — signals its intent to play a central role in steering the future of AI. Whether this leads to a cooperative global order or deeper techno-political competition remains to be seen.

With this new action plan, China has not only advanced its domestic AI agenda but also thrown down the gauntlet for global leadership in AI ethics, safety, and access, issues that will define the shape of international technology governance in the years ahead.