APEC Summit Sparks a Global AI Power Play
At the recent Asia-Pacific Economic Cooperation (APEC) summit in South Korea, Chinese President Xi Jinping threw down a diplomatic and technological gauntlet. In a bold maneuver aimed at reshaping the future of global AI governance, Xi proposed the establishment of a “World Artificial Intelligence Cooperation Organization” (WAICO)—a new multilateral body that would set international AI rules and position the technology as a public good.
The move positions China as a central figure in AI diplomacy and as a potential alternative to Western-led regulatory frameworks, which have long dominated the conversation around ethics, safety, and standards in artificial intelligence.
A Strategic Pivot to Reclaim Global Leadership in AI Governance
China’s proposal is not just a diplomatic gesture—it is a direct challenge to the current US- and EU-driven global AI governance agenda. Western countries, particularly the United States, have adopted a more decentralized and commercially driven approach to AI development, while the EU has begun enforcing increasingly stringent AI regulations such as the EU AI Act.
China, on the other hand, is now seeking to position itself as a global convener of AI standards and policy through WAICO. According to Xi, this organization would help ensure AI remains accessible and beneficial to all nations, especially those in the Global South. By casting artificial intelligence as a public good rather than a competitive asset, China aims to foster a new narrative—one that emphasizes inclusivity, shared development, and mutual cooperation.
“Artificial intelligence must benefit all humanity—not become a tool for a few to dominate the many,” Xi said at APEC.
Why China is Pushing WAICO Now
1. The Global Governance Vacuum
While AI capabilities have rapidly expanded, the international framework governing its development remains patchy. Most current efforts—such as the OECD AI Principles or the G7’s Hiroshima Process—are fragmented, voluntary, and primarily Western-led. China views this governance gap as both a strategic opportunity and a risk, particularly as its own AI ecosystem matures.
Premier Li Qiang underscored this concern earlier in 2025, warning that “global AI governance is still fragmented” and could lead to an AI future monopolized by a few powerful nations and corporations.
2. Geopolitical Counterbalance to the West
China’s growing rivalry with the U.S. in the AI domain—fueled by ongoing chip sanctions, export controls, and the race to dominate large language models (LLMs)—is prompting it to create an institutional counterweight. WAICO, if successful, could be a platform for like-minded nations and developing economies to coalesce around AI governance principles that reflect non-Western priorities.
3. Techno-Soft Power Strategy
WAICO also fits into China’s broader diplomatic vision of “Digital Silk Road” diplomacy. By embedding itself as the architect of global AI norms, China can expand its influence, especially among developing countries that may be wary of Western regulatory dominance. Proposing WAICO as an open, inclusive, and transparent organization is a deliberate attempt to project soft power and leadership in an increasingly bifurcated technological world.
Inside the WAICO Blueprint
While full details have yet to be released, the preliminary vision for WAICO includes several critical elements:
- Global Headquarters: China has proposed Shanghai as the base for WAICO, signaling its intention to serve as the organizational hub for global AI governance.
- Functions: The organization would be responsible for developing global AI safety and ethics standards, facilitating knowledge sharing, coordinating cross-border research, and promoting access to AI technologies for all.
- Public Good Approach: The initiative champions the concept of AI as a shared infrastructure—essentially reframing it as global public utility rather than a geopolitical weapon.
- Complementarity with Other Initiatives: China earlier released a 13-point global AI governance initiative in mid-2025, advocating for United Nations-led dialogue, open-source sharing, and collaborative governance—a narrative WAICO now extends.
International Response: Support, Scepticism, and Strategic Calculation
India’s Calculated Position
India, a rising AI power with its own ambitions in global tech leadership, has offered “cautious support” for the Chinese initiative. While India is open to multilateral governance discussions, it remains wary of aligning too closely with China due to geopolitical tensions and strategic alignment with Western AI partners.
U.S. and EU Concerns
The United States has long resisted centralized, binding international AI regulations. It sees organizations like WAICO—especially if steered from Shanghai—as potential instruments of soft-power expansion and ideological control. The EU, although more amenable to regulation, may question WAICO’s transparency, neutrality, and alignment with democratic values.
What’s at Stake: Fragmentation or a New Global Consensus?
China’s proposal could either catalyze the long-overdue formation of a coherent global AI governance framework—or accelerate the fragmentation of global AI standards.
Scenario One: Bifurcated AI Ecosystems
If the U.S., EU, and allies reject WAICO outright, a splintered global AI order could emerge. This might mirror current tech divides seen in 5G infrastructure or semiconductor supply chains. Competing standards for ethical AI, data sharing, and algorithmic accountability would make cross-border collaboration more difficult and costly.
Scenario Two: Inclusive Multilateral Governance
If WAICO can earn credibility as a genuinely inclusive platform—not a proxy for China’s strategic goals—it might gain traction with emerging markets and smaller nations seeking a seat at the AI table. Over time, it could pressure even skeptical Western powers to participate, or at least engage in structured dialogue.
Challenges Ahead: Trust, Transparency, and Tangibility
Despite the ambition, there are serious hurdles to overcome:
- Credibility Gap: Many nations will demand proof that WAICO will be multilateral and not China-centric.
- Lack of Enforcement Mechanisms: Setting rules is easier than enforcing them, especially without global consensus.
- Trust and Openness: Western countries, private companies, and civil societies may hesitate to engage with a system perceived to lack democratic accountability.
- Innovation vs. Regulation Tension: An overly regulatory stance could stifle innovation, while under-regulation risks creating an AI “wild west” where dominant players dictate terms.
The Road Ahead: Key Events to Watch
- China’s Hosting of APEC 2026: Set in Shenzhen, the next APEC summit offers Beijing a platform to formalize WAICO and build coalition support.
- Initial Membership Roster: Which countries sign up first will shape perceptions of WAICO’s legitimacy.
- UN Involvement: Whether WAICO aligns with or supplants existing UN-led AI dialogues will be crucial.
- Private Sector Buy-In: How global tech companies and AI research labs react could determine WAICO’s practical influence.
Final Take: A Calculated Bid to Redefine Global AI Governance
China’s proposal of a World Artificial Intelligence Cooperation Organization is a significant, if contentious, step in the evolution of AI geopolitics. It reflects a deeper ambition to lead—not just in developing AI—but in shaping the rules by which it is governed globally.
As nations race to unlock AI’s transformative potential while containing its risks, China’s WAICO initiative may prove to be a pivotal moment. Whether it becomes a catalyst for collective cooperation or a symbol of deepening technological fragmentation will depend on the weeks and months ahead.
