Rise of Generative AI:  Is China still on the Track to Become AI Superpower

Authors

  • Zaigham Abbas PhD Scholar, Department of Strategic Studies, National Defense University, Islamabad, Pakistan.
  • Dr. Fouzia Amin Assistant Professor, Department of Strategic Studies, National Defense University, Islamabad, Pakistan. https://orcid.org/0000-0003-1356-0544

DOI:

https://doi.org/10.62843/jrsr/2025.4a058

Keywords:

Generative Artificial Intelligence, Large Language Models, Asymmetric Response, Chip War, Ethical AI

Abstract

US – China strategic competition is zeitgeist of 21st century. In pursuance of Hundred Years Marathon, China aims to supplant USA as Global Superpower. However, USA’s conventional military superiority has obligated China to adopt an asymmetric approach. Experiencing its sputnik moment in 2017, China crafted its "New Generation Artificial Intelligence Development Plan 2017", according to which it aims to become Global AI Superpower by 2030. China has invested huge capital to gain the lead in this field an in fact, leading in many AI fields including robotics, Self –driving cars and speech recognition. But in 2022, Development of ChatGPT by OpenAI caught China by surprise. China is caught in catch 22 situation. On one hand, it has to compete with USA in the field of Artificial Generative Intelligence, on the other hand it is compelled to adopt a measured approach due to Chinese Communist Party’s (CCP) authoritarian rule and heavily censored media. China has replied to this challenge by vertical development of AI models at the same time leading the world in establishment of AI rules and regulations. USA’s endeavors like banning of chips or restricting access to its Large Language Models (LLMs) may prove to be a minor hindrance, but in the longer run, a strong technological base, increasing reservoir of trained scientists and CCP’s beckoning of AI industry may prove to be the winning strokes for China. However, the future is uncertain yet and AI will remain a fierce battleground between USA and China for years to come.

References

AMAX. (2025, February 12). No, DeepSeek isn’t the end for GPUs. It’s just the beginning. https://www.amax.com/no-deepseek-isnt-the-end-for-gpus-its-just-the-beginning/

Chui, M., Hazan, E., Roberts, R., Singla, A., & Smaje, K. (2023). The economic potential of generative AI. https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier

Dobberstein, L. (2024, March 6). China pushes “AI Plus” initiative to integrate technology and industry. The Register. https://www.theregister.com/2024/03/06/china_peoples_congress_tech_plans/

Farooq, M. (2023, October 10). China’s leading role in AI revolution and its global impact. CGTN. https://news.cgtn.com/news/2023-10-10/China-s-leading-role-in-AI-revolution-and-its-global-impact-1nMNJGF8K1W/index.html

Gu, Y. (2024, May 15). China’s large-scale AI models boost industrial development. People.Cn. Retrieved March 18, 2025, from http://en.people.cn/n3/2024/0515/c90000-20169892.html

Leswing, K. (2025, January 27). Nvidia calls China’s DeepSeek R1 model ‘an excellent AI advancement.’ CNBC. https://www.cnbc.com/2025/01/27/nvidia-calls-chinas-deepseek-r1-model-an-excellent-ai-advancement.html

Lowy Institute. (2023). Lowy Institute Asia Power Index 2023: Economic capability (size: Gross domestic product). https://power.lowyinstitute.org/data/economic-capability/size/gross-domestic- product/

Murgia, M., Bradshaw, T., & Waters, R. (2023, May 24). Chip wars with China risk ‘enormous damage’ to US tech, says Nvidia chief. Financial Times. https://www.ft.com/content/ffbb39a8- 2eb5-4239-a70e-2e73b9d15f3e

Peng, D. (2024, May 18). China replaces imported quantum computer component with domestic product immediately after US sanctions. South China Morning Post. https://www.scmp.com/news/china/science/article/3262995/china-replaces-imported-quantum-computer-component-domestic-product-immediately-after-us-sanctions

Roberts, H., & Hine, E. (2023, September 27). The future of AI policy in China. East Asia Forum. https://eastasiaforum.org/2023/09/27/the-future-of-ai-policy-in-china/

Robinson, D. (2024, January 8). Nvidia readies downgraded chips for China, but will anyone want to buy them? The Register. https://www.theregister.com/2024/01/08/nvidia_china_chips/

Smith, C. S. (2025, March 8). China’s autonomous agent, Manus, changes everything. Forbes. https://www.forbes.com/sites/craigsmith/2025/03/08/chinas-autonomous-agent-manus-changes-everything/

The White House. (2017, December). National security strategy of the United States of America. https://trumpwhitehouse.archives.gov/wp-content/uploads/2017/12/NSS-Final-12-18-2017- 0905.pdf

Triolo, P., & Perera, A. (2023, September 20). This is the state of generative AI in China. The China Project. https://thechinaproject.com/2023/09/20/this-is-the-state-of-generative-ai-in-china/

Xu, Y. (2024, June 5). The U.s.-China AI dialogue would benefit from more stakeholders. Center for Data Innovation. https://datainnovation.org/2024/06/the-u-s-china-ai-dialogue-would-benefit-from-more-stakeholders/

Zheng, J. (2021, January 12). Can China become the AI superpower? Chatham House. https://www.chathamhouse.org/2021/01/can-china-become-ai-superpower

Mozur, P., Liu, J., & Metz, C. (2024). China's Rush to Dominate AI Comes With a Twist: It Depends on US Technology. International New York Times, NA-NA.

Snyder, A. (2024, May 3). Exclusive: Inside the AI research boom. Axios. https://cset.georgetown.edu/article/exclusive-inside-the-ai-research-boom/

Lee, L. C. (2024, February 21). Implications of China’s AI strategy: State engineering, domestic challenges, and global competition. Asia Society. https://asiasociety.org/policy-institute/implications-chinas-ai-strategy-state-engineering-domestic-challenges-and-global-competition

Chen, Q. (2024, February 7). China’s emerging approach to regulating general-purpose artificial intelligence: Balancing innovation and control. Asia Society Policy Institute. https://asiasociety.org/policy-institute/chinas-emerging-approach-regulating-general-purpose-artificial-intelligence-balancing-innovation-and

Chang, W. (2024, April 17). China keeps generative AI on simmer. MERICS. https://merics.org/en/comment/china-keeps-generative-ai-simmer

Morgan, JP. (2024, May 13). How AI is shaping these three industries in China. JP Morgan. https://www.jpmorgan.com/insights/global-research/artificial-intelligence/ai-transforming-industries-china

Sri Lanka Guardian. (2024, May 13). China produces nearly half of the world’s top AI researchers, who increasingly choose to stay home. Sri Lanka Guardian. https://slguardian.org/china-produces-nearly-half-of-the-worlds-top-ai-researchers/

Wodecki, B. Jr. (2024, January 12). "Desperate" Chinese companies using Nvidia gaming chips for AI. AI Business. https://aibusiness.com/verticals/-desperate-chinese-companies-using-nvidia-gaming-chips-for-ai

Baptista, E. (2024, January 15). China's military and government acquire Nvidia chips despite US ban. Reuters. https://www.reuters.com/technology/chinas-military-government-acquire-nvidia-chips-despite-us-ban-2024-01-14/

Biever, C. (2024, May 22). China’s ChatGPT: Why China is building its own AI chatbots. Nature. https://www.nature.com/articles/d41586-024-01495-6

Varansi, L. (2024, May 19). OpenAI founders Sam Altman and Greg Brockman go on the defensive after top safety researchers quit. Business Insider. https://www.businessinsider.com/openai-altman-brockman-defend-safety-sutskever-leike-quit-2024-5

Au, A. (2023, October 19). China vs US approaches to AI governance. The Diplomat. https://thediplomat.com/2023/10/china-vs-us-approaches-to-ai-governance/

Downloads

Published

2025-03-20

Issue

Section

Articles

How to Cite

Abbas, Z., & Amin, F. (2025). Rise of Generative AI:  Is China still on the Track to Become AI Superpower. Journal of Regional Studies Review, 4(1), 174-183. https://doi.org/10.62843/jrsr/2025.4a058

Similar Articles

41-50 of 75

You may also start an advanced similarity search for this article.