China’s AI Governance Gambit: Xi’s Global Body Bid Challenges US Tech Dominance

According to CNBC, Chinese President Xi Jinping used the APEC summit in Gyeongju, South Korea, to propose establishing a World Artificial Intelligence Cooperation Organization that would set global governance rules and promote cooperation. Xi framed AI as a “public good for the international community” that should benefit people in all countries and regions, marking his first public comments on an initiative Beijing unveiled earlier this year. The proposed organization could be based in Shanghai, while U.S. President Donald Trump skipped the APEC leaders’ summit entirely, flying directly back to Washington after meeting with Xi. The two leaders did reach a one-year deal to partially roll back trade and technology controls that had heightened tensions between the world’s largest economies, creating an opening for China to promote its multilateral cooperation approach.

Strategic Timing in Geopolitical Vacuum

Xi’s proposal arrives at a critical juncture in artificial intelligence governance development. The absence of U.S. leadership at APEC created precisely the kind of vacuum China has been positioning itself to fill. While the United States has consistently rejected multilateral approaches to AI regulation in favor of industry-led standards, China sees an opportunity to establish governance frameworks that could eventually constrain American technological dominance. This isn’t merely about creating another international body—it’s about setting the foundational rules for what many consider the most transformative technology of our generation.

The Algorithmic Sovereignty Imperative

Behind China’s push lies a deeper strategic concern about technological dependence. The reference to DeepSeek’s lower-cost AI models versus Nvidia’s advanced chips reveals Beijing’s anxiety about being locked out of Western technology ecosystems. China’s concept of “algorithmic sovereignty” represents a fundamental divergence from U.S. approaches—where America sees open innovation, China perceives vulnerability. By promoting homegrown alternatives and seeking to shape global standards, China aims to ensure its technological self-sufficiency while potentially creating dependencies for other nations in its own technological orbit.

The Coming Governance Battle

The proposed World AI Cooperation Organization would likely face significant challenges in gaining international legitimacy, particularly from Western democracies concerned about China’s domestic AI applications in surveillance and social control. However, for many developing nations wary of U.S. technological hegemony, China’s framing of AI as a “public good” could prove appealing. The real battle will be over which vision of AI governance prevails: America’s market-driven approach or China’s state-led model. Neither China’s leadership nor the Trump administration appears willing to cede ground on this fundamental philosophical divide.

Implementation Challenges and Realistic Outlook

While the proposal sounds ambitious, the practical implementation faces numerous hurdles. International consensus on AI ethics remains elusive, with fundamental disagreements about privacy, surveillance, and military applications. China’s own AI development practices, particularly around data collection and social credit systems, would likely face scrutiny from potential member states. The most probable outcome is a fragmented governance landscape where China leads one bloc of nations while the U.S. and allies develop competing standards—a digital Iron Curtain that could ultimately slow global AI progress and create incompatible technological ecosystems.

The broader implication is clear: the race for AI supremacy is no longer just about technological innovation—it’s increasingly about who gets to write the rules that will govern this transformative technology for decades to come.