The U.S. and China's AI clash in Asia
Gary Dvorchak, a managing director at The Blueshirt Group, explained that the American approach focuses on ensuring China does not emerge as the main supplier of AI technology for Asia and beyond. While U.S. offerings range from chips to advanced AI models, China's alternatives offer a compelling cost advantage that many countries find hard to ignore.
At the Asia-Pacific Economic Cooperation "Digital Weeks" held in Chengdu, the U.S. had a notably low public presence, despite having played a role in promoting the event earlier in the year. A U.S. official and a U.S. business representative had previously highlighted the importance of AI in driving the agenda of the meeting, but their actual participation during the event seemed limited, raising questions about the U.S. strategy's effectiveness.
U.S. exports program faces challenges
The American AI Exports Program, introduced last summer, aims to expand the global reach of U.S. AI technology. However, the program has so far drawn only 78 applications, a number that former officials have called disappointing. Bill Guidera, a deputy under secretary at the U.S. Department of Commerce, continued to advocate for the initiative at the APEC High-level Forum on AI, held in Chengdu. His involvement signaled ongoing U.S. commitment, but the low response suggests the program might not be gaining the traction it hoped for.
Guidera emphasized the potential of a full U.S. tech stack, suggesting buyers could access complete systems or just parts through the exports program. He described it as a "brilliant design" that showcases the strength and security of American AI. However, the Commerce Department's International Trade Administration, in its social media post, only confirmed Guidera's presence at the event without addressing the lackluster application numbers. When asked about the discrepancy, the government has yet to provide a detailed explanation.
Beijing's AI diplomacy
China is using its role as the host of this year's APEC to demonstrate its AI capabilities. Unlike the U.S., much of China's AI is open-source, making it more affordable and accessible for developing countries. During the World AI Conference in Shanghai, Chinese President Xi Jinping announced a plan to provide 5,000 opportunities for AI training and seminars to developing nations. This move signals China's ambition to lead in AI education and collaboration in Asia.
Later, at the minister-level APEC Digital Weeks in Chengdu, Vice Premier Zhang Guoqing pushed for the development of tech standards among Asia-Pacific nations. The 21 member economies, including the U.S., agreed to support open-source AI with "strong security." Analysts believe this endorsement strengthens China's AI strategy, especially in emerging markets in Asia where cost and control over technology are major concerns.
Wei Sun, a principal analyst at Counterpoint Research, pointed out that China's strategy of offering open-source AI models is gaining regional legitimacy, particularly in Southeast Asia. This shift aligns with the needs of many developing countries that seek affordable and adaptable technology solutions.
Private startup Votee AI is another example of how regional needs are shaping AI development. The company, which has secured support from at least five governments, including two in Southeast Asia, is creating AI systems tailored to local languages. CEO Pak-Sun Ting explained that the startup already earns more than $10 million a year and is working to address the language barriers in AI. For example, in regions with Cantonese speakers, Votee uses Alibaba's open-source Qwen model to better serve local users.