The US wants the world to pick a side on AI. But for many countries, China’s pitch may be more compelling

The US framing of an AI "side-picking" choice is a false dilemma for many Asian markets. Chinese models like DeepSeek and Moonshot saw their global usage jump from under 15% to over 54% last week. This growth is driven by lower costs and customization flexibility. Companies, including American firms like Airbnb and Shopify, prioritize diversification over exclusive alliances. This pragmatic approach will continue to shape AI adoption across Asia.

China's open-source AI strategy benefits from existing distribution networks in emerging markets. Huawei and ZTE, for example, already have substantial telecom and hardware footprints. These companies are well-positioned to provide support and services around Chinese AI models. The test for Asian developers will be balancing the cost advantages of open models against the perceived performance edge of proprietary US systems.

The US focus on containing China through export controls has inadvertently pushed Chinese developers toward open models. This has accelerated their global adoption. The ongoing dialogue between Trump and Xi on AI risks and benefits has yielded little concrete progress. The entrenched mistrust between the two nations means future AI developments will likely proceed along these parallel, competing tracks.