US and China compete for global AI leadership and influence

The global competition for artificial intelligence leadership is intensifying between the United States and China, creating significant geopolitical and security implications. In China, leader Xi Jinping has identified open-source AI as a historic opportunity to shape the technology according to national interests. Reports indicate that Chinese researchers are extracting data from American AI models to enhance military applications, including surveillance, drones, and cyberwarfare, facilitated by China’s policy of Military-Civil Fusion.

In response to this rivalry, Southeast Asian nations are adopting political hedging strategies similar to those used during the Cold War. These countries are attempting to navigate the competition by seeking a ‘third pathway’ to avoid total reliance on either the American or Chinese technology stacks. While the U.S. promotes its hardware and software as the global ‘gold standard,’ China is investing heavily in domestic capabilities to establish its own international standards and replace U.S. dominance in the region.