China's AI Conference Masks US-China Tech Battle

💡 TL;DR - The 30 Seconds Version

👉 China hosted 800 companies at Shanghai's World AI Conference while Nvidia had no booth due to US export restrictions cutting off a $50 billion market.

🤖 Chinese robots showcased boxing matches and daily tasks, with Unitree teasing a $6,000 humanoid as the country pushes toward a predicted $7 trillion robotics market by 2050.

🏛️ Premier Li Qiang called for a global AI cooperation organization with headquarters likely in Shanghai, positioning China as diplomatic leader while Trump pursues deregulation.

💻 Huawei displayed its Ascend chip system linking 384 processors to replace Nvidia technology, though it requires five times more power consumption than US alternatives.

🌍 The conference reveals China's strategy to shape international AI standards while the US focuses inward, potentially determining who controls AI development rules.

Boxing robots threw punches in Shanghai this weekend. But the real heavyweight bout happened between podiums, where China and the United States traded very different visions for AI's future.

The World Artificial Intelligence Conference drew 800 companies to showcase everything from egg-peeling droids to backflipping robot dogs. Thousands gawked at Unitree's $6,000 humanoid and ByteDance's shirt-hanging bot. The spectacle was impressive. It was also strategic theater.

While visitors marveled at mechanical mahjong players, Chinese Premier Li Qiang delivered the event's actual punch line: China wants to lead global AI cooperation. Just days after Donald Trump signed executive orders to deregulate American AI development, Li called for a new international organization to coordinate AI safety and governance.

The Ghost of Nvidia

The most telling presence at the conference wasn't a company that attended. It was one that didn't.

Nvidia makes the chips that run AI systems and recently became the world's most valuable company. But it had no booth in Shanghai. This wasn't an oversight. US export restrictions forced Nvidia to stop selling to China in April, cutting off access to chips that CEO Jensen Huang called a $50 billion market.

Huawei filled the void with enthusiasm. The Chinese telecom giant positioned its display near the venue entrance, showcasing its Ascend chips and a new computing system that links 384 processors together. The message was clear: China doesn't need Silicon Valley anymore.

"So far, in the US market, we don't see very cost-effective and reliable competitors," Deep Robotics' Americas director Eric Wang told Bloomberg. "And we don't see that happening in two to three years."

The confidence isn't misplaced. Research firm SemiAnalysis found that while individual Ascend chips trail Nvidia's latest Blackwell processors, Huawei's systems compensate by cramming in five times more chips. The trade-off? Power consumption that would make a data center manager weep.

Two Visions, One Battle

Li Qiang's speech painted China as AI's diplomatic leader. He said countries need to work together because AI governance is broken and scattered. China would share its AI advances with developing countries and push for open-source development.

Compare that with Trump's Wednesday declaration: "From this day forward, it'll be a policy of the United States to do whatever it takes to lead the world in artificial intelligence." His executive orders aimed to free American AI companies from regulatory burdens, not create new international frameworks.

The contrast wasn't accidental. Geoffrey Hinton, the computer scientist known as AI's godfather, told the Shanghai audience that international cooperation would be "difficult with the current US administration." He added that "rational countries will collaborate" on keeping humans in control of AI systems.

That dig landed. Trump's America First approach has dismissed global collaborations, while China positions itself as the reasonable alternative. It's a clever gambit from a country facing export restrictions on advanced semiconductors.

The $7 Trillion Question

Behind the diplomatic posturing lies serious money. Citigroup predicts humanoid robots will create a $7 trillion market by 2050. China wants to dominate it.

The country has hundreds of robotics startups, boosted by President Xi Jinping's endorsement and government incentives. Chinese companies now build their own chips and use open-source AI software to speed up progress. This year alone, their robots ran in half-marathons, fought in kick-boxing matches, and played soccer.

They weren't good at any of it. Most couldn't finish races or threw clumsy punches. But each attempt showed China's determination to solve a real problem: fewer young workers and an aging population threaten its factory dominance. Human-looking robots might fill the gap.

"The technology is developing so fast," Wang observed. The question isn't whether Chinese robots will improve. It's whether they'll improve faster than American export restrictions can slow them down.

The Cooperation Trap

China's call for AI cooperation sounds noble. It might also be brilliant strategy.

Creating an international AI organization with headquarters in Shanghai would give China significant influence over global standards. As the UN's tech chief noted, the world needs coordination between "the EU approach, the Chinese approach, and the US approach."

But Trump's administration seems unlikely to join any framework it doesn't control. That leaves China free to shape international AI governance with Europe and developing countries while portraying America as the uncooperative outlier.

AI industry leaders have warned about risks ranging from disinformation to human extinction. OpenAI's Sam Altman has called for an international agency to oversee powerful AI systems. China is offering to host it.

Beyond the Robot Theater

The robot boxing matches and mahjong-playing machines were entertaining distractions. The real competition played out in speeches about chips, cooperation, and control.

China demonstrated it can build impressive AI systems despite US restrictions. It positioned itself as a collaborative leader while America pursues isolation. And it showcased domestic alternatives to American technology in front of global audiences.

The conference's robot dogs might steal headlines, but they're solving tomorrow's problems. The diplomatic maneuvering addresses today's reality: whoever sets the rules for AI development will shape the next century of human progress.

Why this matters:

• China is using America's regulatory retreat to position itself as AI's diplomatic leader, potentially setting global standards while the US focuses inward.

• The robot spectacle masks a more serious shift toward Chinese technological independence that could reshape global AI development regardless of future US policy changes.

❓ Frequently Asked Questions

Q: What are the US export restrictions that blocked Nvidia from selling to China?

A: The US imposed export controls over three years to limit China's AI capabilities, preventing Nvidia from selling its most advanced chips. New restrictions in April 2025 forced Nvidia to stop all sales to China, including the H20 chips it designed specifically for the Chinese market.

Q: How does Huawei's chip system actually compare to Nvidia's technology?

A: Huawei's Atlas 900 A3 SuperPoD links 384 Ascend chips together, using five times more processors than Nvidia's GB200 system. While individual Ascend chips are less powerful than Nvidia's Blackwell chips, the sheer number compensates. The trade-off is much higher power consumption.

Q: Why does China desperately need humanoid robots for its economy?

A: China faces demographic decline and factory worker shortages that threaten its manufacturing dominance. The country's aging population and declining birth rates mean fewer young workers are available for assembly lines. Human-looking robots could fill these gaps while maintaining production levels.

Q: What happened to Elon Musk at this year's conference?

A: Musk didn't speak at the 2025 conference, breaking his pattern of regular appearances at the Shanghai event's opening ceremony in previous years. Tesla still had a booth, but Musk's absence was notable given his previous high-profile participation both in-person and via video.

Q: How realistic is China's goal to become the global AI leader by 2030?

A: China has made significant progress, with DeepSeek creating AI models that rival OpenAI's systems at a fraction of the cost. The country has hundreds of robotics startups and strong government backing. However, US export restrictions on advanced chips remain a major obstacle to achieving full technological independence.

Q: What specific robot demonstrations impressed visitors at the conference?

A: Robots boxed in fighting rings, played mahjong, peeled eggs, and dispensed popcorn and drinks (though messily). ByteDance showed its Mini robot hanging up a shirt, while Unitree displayed backflipping robot dogs. Most struggled with their tasks, but the variety showed rapid development progress.

Q: Which countries might actually join China's proposed AI cooperation organization?

A: The conference included speakers from France and other European nations, suggesting potential EU participation. China specifically mentioned sharing advances with developing countries in the Global South. With the US pursuing isolation under Trump's America First policy, China could build support among non-aligned nations.

Q: How big was this conference compared to previous years?

A: The 2025 event featured over 800 companies showcasing more than 3,000 high-tech products, 40 large language models, 50 AI-powered devices, and 60 intelligent robots. This represents significant growth from previous years, reflecting China's expanding AI ecosystem despite US restrictions.