China’s Competitive Advantages in Artificial Intelligence

China is emerging as a leading player in many areas of AI. This was demonstrated by the recent World AI Conference 2024 held in Shanghai, where the latest advancements in AI technology were showcased, including the large language model Novel 5.5. The Asian country continues to cooperate intensively with the USA in this field. According to a report by Stanford University, the number of AI research collaborations between the USA and China has quadrupled over the past decade despite geopolitical tensions.

Globally, China is on the fast track. In 2023, the nation fostered over 47% of the world’s AI talent and published 61% of global studies on AI, highlighting its tremendous focus on AI development and innovation. A significant advantage for China lies in its infrastructure and lower costs for computing power. While electricity and network costs vary greatly in the USA, they are significantly lower in China due to strategic planning and regional differences. This provides a solid foundation for scaling AI applications.

Another competitive advantage is the close collaboration between companies and academic institutions. Leading companies such as Baidu, Alibaba, Tencent, and Xiaomi are working on the development and implementation of advanced AI models. These collaborations allow for the rapid integration of innovative solutions across various industries. The Chinese government propels continuous innovation in AI research through substantial investments, creating an exceptionally dynamic environment where new technologies can be quickly developed and put into practice.

China also leads in the implementation of AI in the cloud. Companies like Kingsoft Cloud, which offers customized cloud services for the Xiaomi Group, provide efficient and cost-effective AI solutions. These cloud services enable the large-scale operation of AI applications without incurring high infrastructure costs.

Overall, China’s ongoing development in AI demonstrates that the country is well-positioned to play a leading role in the global competition. With a strong research base, robust infrastructure, and strategic partnerships, China has created the conditions necessary to continue developing and implementing innovative and efficient AI solutions.

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