China’s advancement in artificial intelligence challenges the notion that dominance is solely about computing power and proprietary innovation. Instead, Beijing is leveraging open-source models like DeepSeek R1 and Moonshot AI’s Kimi K2 to appeal to the global South by offering adaptable, low-cost alternatives to closed models favored by American firms.
These Chinese models, while slightly trailing U.S. performance benchmarks, are finding massive uptake due to their accessibility, particularly in the health and public sectors.
Meanwhile, their efforts aren’t confined to algorithmic advancement.
A state-led digital infrastructure expansion, including global cloud data centers and AI governance initiatives, supports the rise of Chinese AI technologies. As developing countries express higher levels of trust and optimism in AI, Beijing’s open-model strategy is influencing geopolitics.
This approach contrasts with the U.S. focus on export controls and closed AI ecosystems.
Why It Matters: AI is now a matter of influence. China’s deployment of AI to increase soft power in the global South could shift the technological balance of power. If the U.S. fails to adapt by supporting open models and recalibrating its export policies, it may lose diplomatic leverage and economic opportunities in regions where AI demand is rising fastest.
- Open-Source Leverage: Chinese firms like DeepSeek and Moonshot AI are redefining what influence looks like in the AI landscape through mass adoption of open-source models. DeepSeek’s R1, for instance, saw 97 million active users by April 2025, with more than 2.5 million downloads of derivative models in January alone. These derivatives allow local developers to create industry-specific models, a function that closed U.S. models often prohibit or charge heavily for. This democratization of AI tools frames a compelling narrative for China as an enabler of AI empowerment.
- Digital Infrastructure as an Extension of Foreign Policy: China’s AI ambitions are tied to its broader geopolitical initiatives. Through programs like the Digital Silk Road, Beijing is laying the physical and digital foundations for countries to become long-term consumers of Chinese tech. Companies like Alibaba Cloud and Huawei Cloud are expanding aggressively into Latin America, Southeast Asia, and Africa. This infrastructure acts as a deployment platform for open AI models, creating dependency loops that could give Beijing sustained influence.
- Brain-Computer Interfaces to Bypass AI Constraints: China is also pursuing innovations like brain-computer interfaces (BCIs), reflecting its willingness to experiment with neuroscience and AI. Chinese state documents reveal a strategy that diverges from the U.S. emphasis on scaling language models alone. By integrating the human brain closer with machines, China hopes to unlock new paths to artificial general intelligence and a future where AI becomes a functioning cognitive partner.
- A Shifting U.S. Strategy: The Trump administration’s AI Action Plan, released in July 2025, acknowledges the need to counter China by offering comparable policy and infrastructure reforms. Industry leaders are pivoting accordingly, with Meta’s LLaMA models and OpenAI’s forthcoming open-source release reflecting this urgency.
- Trust as a Catalyst: One of China’s greatest assets is the high level of AI public trust among developing nations. Surveys from the Edelman Trust Barometer and Google/Ipsos show that populations in countries such as India, Nigeria, Brazil, and Indonesia view AI positively, believing it will improve work, healthcare, and education. This is notably dissimilar to increasing skepticism in the United States and parts of Europe. Beijing’s emphasis on sharing quality yet cost-efficient open models feeds into this sentiment, framing China as a willing partner in global development.
Go Deeper -> China’s Overlooked AI Strategy – Foreign Affairs
Google warns America to take China’s AI innovation seriously – The Washington Times
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