logo
China calls for global consensus on balancing AI development

China calls for global consensus on balancing AI development

Qatar Tribune7 days ago
Agencies
China's Premier Li Qiang cautioned on Saturday that artificial intelligence development must be weighed against the security risks, saying global consensus was urgently needed even as the tech race between Beijing and Washington shows no sign of abating.
His remarks came just days after U.S. President Donald Trump unveiled an aggressive low-regulation strategy aimed at cementing U.S. dominance in the fast-moving field, promising to 'remove red tape and onerous regulation' that could hinder private sector AI development.
Opening the World AI Conference (WAIC) in Shanghai on Saturday, Li emphasized the need for governance and open-source development, announcing the establishment of a Chinese-led body for international AI cooperation.
'The risks and challenges brought by artificial intelligence have drawn widespread attention ... How to find a balance between development and security urgently requires further consensus from the entire society,' the premier said.
He gave no further details about the newly announced organization, though state media later reported 'the preliminary consideration' was that it would be headquartered in Shanghai.
The organization would 'promote global governance featuring extensive consultation, joint contribution and shared benefits,' Xinhua News Agency reported, without elaborating on its set-up or
mechanisms.
At a time when AI is being integrated across virtually all industries, its uses have raised major questions, including about the spread of misinformation, its impact on employment and the potential loss of technological control.
In a speech at WAIC on Saturday, Nobel Prize-winning physicist Geoffrey Hinton compared the situation to keeping 'a very cute tiger cub as a pet.' To survive, he said, you need to ensure you can train it not to kill you when it grows up.
The enormous strides AI technology has made in recent years have seen it move to the forefront of the U.S.-China
rivalry.
Premier Li said China would 'actively promote' the development of open-source AI, adding Beijing was willing to share advances with other countries, particularly developing ones.
'If we engage in technological monopolies, controls and blockage, artificial intelligence will become the preserve of a few countries and a few enterprises,' he said.
Vice Foreign Minister Ma Zhaoxu warned against 'unilateralism and protectionism' at a later meeting.
Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that they can be used to advance Beijing's military systems and erode U.S. tech dominance.
Li, in his speech, highlighted 'insufficient supply of computing power and chips' as a bottleneck to AI progress.
China has made AI a pillar of its plans for technological self-reliance, with the government pledging a raft of measures to boost the sector.
In January, Chinese startup DeepSeek unveiled an AI model that performed as well as top US systems despite using less powerful chips.
In a video message played at the WAIC opening ceremony, U.N. Secretary-General Antonio Guterres said AI governance would be 'a defining test of international cooperation.' The ceremony saw the French president's AI envoy, Anne Bouverot, underscore 'an urgent need' for global action and for the U.N. to play a 'leading role.' Bouverot called for a framework 'that is open, transparent and effective, giving each and everyone an opportunity to have their views taken into account.' Li's speech 'posed a clear contrast to the Trump administration's 'America First' view on AI' and the U.S. measures announced this week, said WAIC attendee George Chen, a partner at Washington-based policy consultancy The Asia Group.
'The world is now clearly divided into at least three camps: the United States and its allies, China (and perhaps many Belt and Road or Global South countries), and the EU, which prefers regulating AI through legislation, like the EU AI Act,' Chen told Agence France-Presse (AFP).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China summons Nvidia over ‘serious security issues' with AI chips
China summons Nvidia over ‘serious security issues' with AI chips

Qatar Tribune

time21 hours ago

  • Qatar Tribune

China summons Nvidia over ‘serious security issues' with AI chips

Agencies Chinese authorities summoned Nvidia representatives on Thursday to discuss 'serious security issues' over some of its artificial intelligence chips, as the US tech giant finds itself entangled in trade tensions between Beijing and Washington. Nvidia is a world-leading producer of AI semiconductors, but the United States effectively restricts which chips it can export to China on national security grounds. A key issue has been Chinese access to the 'H20', a less powerful version of Nvidia's AI processing units that the company developed specifically for export to China. The California-based firm said this month it would resume H20 sales to China after Washington pledged to remove licensing curbs that had halted exports. But the firm still faces obstacles—US lawmakers have proposed plans to require Nvidia and other manufacturers of advanced AI chips to include built-in location tracking capabilities. And Beijing's top internet regulator said Thursday it had summoned Nvidia representatives to discuss recently discovered 'serious security issues' involving the H20. The Cyberspace Administration of China said it had asked Nvidia to 'explain the security risks of vulnerabilities and backdoors in its H20 chips sold to China and submit relevant supporting materials'. The statement posted on social media noted that, according to US experts, location tracking and remote shutdown technologies for Nvidia chips 'are already matured'. The announcement marked the latest complication for Nvidia in selling its advanced products in the key Chinese market, where it is in increasingly fierce competition with homegrown technology firms. CEO Jensen Huang said during a closely watched visit to Beijing this month that his firm remained committed to serving local customers. Huang said he had been assured during talks with top Chinese officials during the trip that the country was 'open and stable'. 'They want to know that Nvidia continues to invest here, that we are still doing our best to serve the market here,' he said. Nvidia this month became the first company to hit $4 trillion in market value—a new milestone in Wall Street's bet that AI will transform the global economy. Jost Wubbeke of the Sinolytics consultancy told AFP the move by China to summon Nvidia was 'not surprising in the sense that targeting individual US companies has become a common tool in the context of US-China tensions'. 'What is surprising, however, is the timing,' he noted, after the two countries agreed to further talks to extend their trade truce. 'China's action may signal a shift toward a more assertive stance,' Wubbeke said. Beijing is also aiming to reduce reliance on foreign tech by promoting Huawei's domestically developed 910C chip as an alternative to the H20, he added. 'From that perspective, the US decision to allow renewed exports of the H20 to China could be seen as counterproductive, as it might tempt Chinese hyperscalers to revert to the H20, potentially undermining momentum behind the 910C and other domestic alternatives.' New hurdles to Nvidia's operation in China come as the country's economy wavers, beset by a years-long property sector crisis and heightened trade headwinds under US President Donald Trump. Chinese President Xi Jinping has called for the country to enhance self-reliance in certain areas deemed vital for national security—including AI and semiconductors—as tensions with Washington mount.

What to expect from the Chinese consumer?
What to expect from the Chinese consumer?

Qatar Tribune

timea day ago

  • Qatar Tribune

What to expect from the Chinese consumer?

Chinese consumer spending slowed significantly in Q2 this year, after a strong start in early 2025. In recent months, growth in real terms dropped to the lowest rate since the start of the year. Importantly, despite new incentive measures to stimulate consumption, household savings rate has been stable, pointing to the difficulty of changing entrenched household habits. In fact, Chinese households have long been viewed as the missing piece in the country's economic puzzle and something that goes beyond cyclical patterns. Despite government stated efforts to enact a transition from investment-led growth into services and consumption, analysts and policymakers have pointed to persistently low consumption as a drag on growth – especially in a country of 1.4 billion people with rising income levels. This perceived underperformance is not fully without cause, as Chinese consumers have remained cautious amid waves of economic disruption: the pandemic, a prolonged property market correction, and increased policy unpredictability. However, despite those facts, we do believe there is a general misunderstanding about the overall magnitude and importance of Chinese private consumption. While the ratio of Chinese consumption over headline GDP cannot be compared to those found in affluent, highly consumerist, private sector driven economies, such as the US, it does not deviate significantly from the ratio from other advanced economies. This is particularly the case for advanced manufacturing, export-oriented economies from Asia, such as Japan, South Korea, Taiwan, and Singapore – countries that adopt an economic model that China emulates. Moreover, in terms of growth dynamics, Chinese consumers have comfortably outperformed their peers even in the most growth-prone large emerging economies of the BRICS (Brazil, Russia, India, China, and South Africa) and MIST (Mexico, Indonesia, South Korea, and Türkiye) over the last decade. In addition to those more constructive facts on Chinese household consumption, we believe that the next phase of the country's growth story could see consumers playing a much more central role. Not only are there strong structural reasons for this shift, but recent policy direction and macro data also support an even more positive outlook. In particular, we highlight three main arguments. First, according to the People's Bank of China (PBoC), the local central bank, personal deposits in the Chinese banking system increased from USD 11.8 trillion pre-pandemic to USD 22.3 trillion in May 2025. This impressive build-up of private savings can be quickly mobilized for more consumption or investments over the medium-term, if confidence in the future is further restored. This would contribute for continued consumer growth and an increase in the overall share of private consumption on GDP. However, the bar is high for a significant increase of consumer spending in China. Households in China tend to be conservative with their finances and prefer to save more on the back of limited social support system from the government. Despite this, only a small change in the savings rate would be enough to create a significant impact on consumption and investment. This is expected to take place as plans to broaden the incipient welfare system are gradually executed. Second, China is actively aiming to further rebalance its growth model away from the need for large infrastructure investments. While much of the recent focus has been on accelerating advanced manufacturing – particularly in sectors such as electric vehicles, batteries, and semiconductors –, policymakers are equally explicit about the need to boost household demand. Beijing has outlined plans to raise the share of consumption in GDP from the current 40% to 50% by 2035. This ambition is being supported by social policy reforms, housing support programmes, lower-tier city revitalization, and support for household credit, particularly in consumer finance. Third, structural reforms are likely to gradually reshape household risk perceptions in China. The country's targeted real estate reforms – mortgage controls and developer deleveraging – are healing distortions in the market. While this process has temporarily dampened activity, it is gradually restoring balance to household finances. At the same time, social safety nets are expanding: pensions are being scaled up, healthcare access broadened, and unemployment insurance slowly strengthened. Taken together, these reforms reduce the perceived need for excessive precautionary savings, thereby loosening household consumption behaviour. All in all, the Chinese consumer is a much bigger driver for growth than the consensus narrative implies. Moreover, private consumption is expected to continue to grow further on the back of a large pool of accumulated savings, an explicit policy shift toward consumption, and underlying reforms that reduce household economic uncertainty. — By QNB Economics

Factory activity in China worsens to six-month low as exports stumble
Factory activity in China worsens to six-month low as exports stumble

Qatar Tribune

timea day ago

  • Qatar Tribune

Factory activity in China worsens to six-month low as exports stumble

Agencies New York China's factory activity unexpectedly deteriorated in July to a six-month low despite a tariff truce with the US, as early signs emerge that exports are slowing and weak domestic demand persists. The official manufacturing purchasing managers' index was 49.3, versus 49.7 in June, the National Bureau of Statistics (NBS) said on Thursday. The median estimate of economists surveyed by Bloomberg was 49.7. A reading below 50 indicates contraction. The non-manufacturing measure of activity in construction and services fell to 50.1 from 50.5 last month, according to the statistics office. That compared with a forecast of 50.2. In a statement accompanying the data release, the NBS blamed high temperatures, heavy rain, and flooding in some regions for disrupting the manufacturing industry, which it said entered 'the traditional off-season' in July. The PMI figures are the first official data available each month to provide a snapshot of the health of the Chinese economy. China's top leaders touted the nation's economic strength at a gathering of the decision-making Politburo on Wednesday. That came after the country registered a record trade surplus in the first half of the year on soaring shipments to southeast Asia and stabilising exports to the US. But China's resilience is facing headwinds. Cargo throughput at the nation's ports last week was the lowest in almost three months and dropped nearly 7 percent from the previous seven days, a sign trade may be starting to slow. Prices for a number of commodities including iron ore and coal climbed in China over the past few weeks, fuelled by hopes that top leaders' efforts to crack down on overcapacity and excessive industrial competition will ultimately lead to lower production and higher prices. A 1.2 trillion yuan ($167 billion or RM712 billion) mega hydropower project in Tibet is also expected to boost demand for building materials, lifting market sentiment. Still, deflationary pressures could persist as a result of weak consumption. A recent survey by the central bank found that Chinese households became more pessimistic last quarter and their view of the jobs market fell to its worst ever. That's fanned fears of a slowdown in the second half of the year, even after a strong first six months of activity exceeded the official annual expansion target of about5 percent.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store