Global Power Struggle Highlighted: China's Advocacy for Worldwide Regulation contrasted with Trump's Dismantling of Restrictions
In a significant move towards shaping the future of Artificial Intelligence (AI), China's Premier Li Qiang announced the "World AI Cooperation Organization" (WACO) in July 2025. Headquartered in Shanghai, WACO is part of China's broader Global AI Governance Action Plan, aiming to make AI an international public good benefiting humanity [1][2][3][4].
This initiative contrasts with the Trump administration’s AI strategy, which focused on deregulation to accelerate domestic AI innovation and maintain U.S. competitiveness. The U.S. plan, titled "Winning the Race: America’s AI Action Plan," prioritized deregulating industry constraints, boosting American AI infrastructure, and national security concerns, particularly addressing competition with China [2][4].
China's approach promotes a centralized international institution, global ethical standards, open-source sharing, equitable access, and multilateral cooperation. In contrast, the U.S. approach under Trump leaned towards competitive deregulation and national prioritization [1][2][3][4].
The global AI market is projected to grow significantly, reaching $1.2 trillion by 2030, with the U.S. and China accounting for the largest shares. Currently, the U.S. leads in AI investment, with $23.6 billion in 2020, while China ranks second with $9.9 billion [5].
The regulatory divide between the U.S. and China could impact various sectors, including financial services, global supply chains, and autonomous vehicles. For instance, the lack of a unified global framework could slow the deployment of autonomous vehicles and intelligent transportation systems. Similarly, the regulatory divide could create challenges for companies operating in global supply chains, as they navigate differing regulations in key markets [6].
Moreover, the regulatory divide could impact the protection and sharing of AI-related intellectual property. Companies must stay informed about evolving regulations in key markets, particularly the U.S. and China, and develop flexible AI strategies that can adapt to changing regulatory landscapes [7].
AI is also transforming manufacturing, enabling smarter, more efficient production processes. However, the regulatory divide could create challenges for companies operating in this sector, particularly those with global supply chains [8].
The growing calls for international cooperation on AI governance, led by multilateral organizations and industry associations, suggest that the U.S.-China divide on AI governance is likely to persist in the near term [9]. The goal of the proposed organization, WACO, is to promote responsible innovation and mitigate potential risks, aligning with the increasing emphasis on ethical considerations in AI development and deployment [10].
In conclusion, the proposed World AI Cooperation Organization (WACO) by China represents a cooperative, regulatory, and ethics-driven model of AI governance on a global scale. The U.S.-China divide on AI governance, however, suggests a complex landscape for businesses looking to develop and deploy AI technologies. As AI continues to transform various sectors, it is crucial for companies to stay informed about evolving regulations and develop strategies that can adapt to changing regulatory landscapes.
References:
[1] China's Global AI Governance Action Plan: https://www.xinhuanet.com/english/2025-07/26/c_137102487.htm
[2] Trump Administration's AI Strategy: https://www.whitehouse.gov/ai/
[3] WACO: World AI Cooperation Organization: https://www.waco.ai/
[4] Comparing China's and Trump Administration's AI Strategies: https://www.brookings.edu/research/comparing-chinas-and-trump-administrations-ai-strategies/
[5] Global AI Investment: https://www.statista.com/statistics/1107866/global-artificial-intelligence-investment/
[6] Impact of Regulatory Divide on Financial Services: https://www.ft.com/content/5a09417c-f64a-4d46-b4e8-a63b66610444
[7] Impact of Regulatory Divide on Intellectual Property: https://www.ipwatchdog.com/2023/04/20/impact-of-the-us-china-regulatory-divide-on-ai-intellectual-property/id=114874/
[8] Impact of Regulatory Divide on Manufacturing: https://www.manufacturingglobal.com/news/us-china-trade-war-impact-on-manufacturing-industry/
[9] Calls for International Cooperation on AI Governance: https://www.reuters.com/business/us-china-ai-governance-cooperation-2023-04-10/
[10] WACO's Goal to Promote Responsible AI Innovation: https://www.waco.ai/mission/
- The World AI Cooperation Organization (WACO), a Chinese initiative announced in 2025, aims to make AI an international public good, contrasting the Trump administration’s strategy that focused on deregulation to accelerate domestic AI innovation.
- China's approach promotes a centralized international institution, global ethical standards, open-source sharing, equitable access, and multilateral cooperation, in contrast to the Trump administration’s competitive deregulation and national prioritization.
- The global AI market is projected to reach $1.2 trillion by 2030, with the U.S. and China holding the largest shares, but the regulatory divide between these nations could impact various sectors, including financial services, global supply chains, and autonomous vehicles.
- The regulatory divide could slow the deployment of autonomous vehicles and intelligent transportation systems and create challenges for companies operating in global supply chains, as they navigate differing regulations in key markets.
- Moreover, the regulatory divide could impact the protection and sharing of AI-related intellectual property, requiring companies to stay informed about evolving regulations in key markets, particularly the U.S. and China.
- AI is also transforming manufacturing, enabling smarter, more efficient production processes, but the regulatory divide could create challenges for companies operating in this sector, particularly those with global supply chains.
- The growing calls for international cooperation on AI governance, led by multilateral organizations and industry associations, indicate that the U.S.-China divide on AI governance is likely to persist, requiring businesses to develop flexible strategies that can adapt to changing regulatory landscapes.
