China urges global AI cooperation, not rivalry, ahead of Xi-Trump summit

China’s call for global AI cooperation, voiced by Minister Yin Hejun at the G20, reflects Beijing's strategy to navigate rising tech tensions with the US. While the US considers new restrictions on Chinese data center equipment and open-weight models, Citi Research analysts suggest these moves are unlikely to significantly disrupt China’s AI exports. Direct US-China trade in this sector is already suppressed, limiting the first-order impact of further restrictions. For Asia, this dynamic means continued pressure on regional supply chains and technology development. Chinese AI companies will likely intensify their focus on domestic innovation and expand partnerships within other Asian markets to mitigate US-led restrictions. The G20 platform served as a diplomatic avenue for China to advocate for a more open global AI environment, even as bilateral tensions persist.