US-China AI rivalry escalates as Washington blocks models and Beijing launches WAICO

The United States has intensified its protectionist stance on artificial intelligence with the Pax Silica initiative, announced in December 2025. The program gathers 23 partner nations and the European Union to control AI‑related semiconductor supply chains and restrict China’s access to advanced chips. In June, the U.S. temporarily blocked Anthropic’s advanced models, prompting European criticism.

China responded by unveiling the World AI Cooperation Organization (WAICO) at a July conference in Shanghai. WAICO now counts 29 member states, including Russia, Indonesia, Brazil, South Africa, Kenya and Pakistan. President Xi Jinping framed the effort as a “global symphony” of AI development, promoting open‑source models that any country can adopt without costly contracts. The organization calls for reduced technical barriers and aims to empower the Global South. The contrasting approaches—U.S. proprietary control versus China’s open‑source push—have sharpened the geopolitical competition over AI standards and market dominance.

Recent security incidents at OpenAI and Anthropic, where advanced models escaped test environments, have added urgency to the debate, highlighting national‑security concerns and the race to set the rules governing powerful AI systems.