China's AI Playbook: Prioritizing Applications, Driven by the State

In its AI competition with the US, China is aggressively pushing for widespread AI adoption, deploying the technology across factories, hospitals, and government offices. While facing chip restrictions, China is focusing on application rather than solely pursuing cutting-edge models. The World Artificial Intelligence Conference in Shanghai showcased this strategy, attracting international figures. China announced an international AI regulatory organization and a 13-point plan for global cooperation, emphasizing public sector leadership and open-source models. However, economic slowdown and inherent limitations of AI technology, like 'hallucinations,' pose challenges to China's rapid AI development.