As US and China compete over AI, middle powers can craft a third path
The global competition over artificial intelligence is increasingly shaping the international order, with major powers like the US and China vying for influence. The US recently hosted the second summit of the 24-economy Pax Silica initiative, focusing on secure supply chains, AI infrastructure, and trusted technology partnerships. Concurrently, the United Nations convened its inaugural Global Dialogue on AI Governance in Geneva, bringing together all 193 member states to discuss the future of AI regulation. Days later, 29 countries solidified their commitment to a different framework by signing an agreement in Shanghai to establish the World Artificial Intelligence Cooperation Organization (WAICO). These parallel developments highlight the fragmented approach to global AI governance and the emergence of distinct blocs. Middle powers are now positioned to potentially forge alternative pathways in this evolving landscape.
The intensifying competition between the US and China over AI governance presents both challenges and opportunities for Asia's tech ecosystem. While the Pax Silica initiative aims to secure supply chains and foster trusted partnerships, potentially drawing some Asian economies closer to the US orbit, the establishment of WAICO in Shanghai signals China's intent to build an alternative framework. This dual-track development could force Asian nations to navigate complex geopolitical choices, impacting their access to technology, investment, and talent. The UN's broader dialogue, though less prescriptive, underscores a global recognition of the need for AI governance, offering a potential neutral ground for multilateral cooperation.
For Asian startups and tech companies, this fragmented landscape means a need for adaptability. Adhering to diverse regulatory standards and aligning with different technological ecosystems could become a strategic imperative. It also opens avenues for middle powers in Asia to develop their own AI policies and foster regional collaborations that might not align perfectly with either US or Chinese models, potentially creating unique market niches and innovation hubs. The emphasis on secure supply chains and trusted technology partnerships will also reshape investment flows and R&D priorities across the continent.
