US-China AI competition accelerates with massive city funding

The artificial intelligence sector in China has entered a new stage that intensifies the competition of artificial intelligence with the United States, as the Chinese huge support programs are launching huge support programs. At the same time, local companies hope to reduce their dependence on American technology. The risks extend beyond technological excellence, as both countries are the dominance of artificial intelligence decisive to economic power and future strategy.

Shanghai 139 million US dollars of artificial intelligence maneuvering investment

Shanghai revealed an ambitious support program for a billion yuan ($ 139 million) for the artificial intelligence industry, which represents the latest in the technological race, as the main cities in China participate in the fierce international competition for domination.

The comprehensive package allocates resources in three main areas: 600 million yuan to calculate energy subsidies, 300 million yuan for a third -party artificial intelligence model discounts, and 100 million yuan to support companies in buying training data groups.

The program provides support rates ranging from 10 % to 100 % of the contract values for computing facilities, artificial intelligence models and data groups, according to the documents issued by the Economy and Municipal Information Committee in Shanghai. The city plans to provide up to 500 million yuan to new artificial intelligence research institutions, with guaranteed financing for three to five years.

“One of the main advantages of Shanghai in developing artificial intelligence is its strong financing,” said Ban Helen, a member of the Experts Committee within the framework of the Ministry of Industry and Information Technology in China. However, Ban noted that the high operating costs of Shanghai often pay the startups of artificial intelligence towards cheaper alternatives such as Hangzhou near.

Competition at the country level increases its height

The Shanghai initiative reflects a wider pattern in China, where cities are strongly competing to establish the dominance of artificial intelligence, while it has become intense competition between cities. Hangzhou emerged as a specific competitor, after announcing last year’s plans to distribute 250 million yuan in supporting computing energy with the care of “six small bragon”-a group of well-known Chinese startup companies, including the artificial intelligence player.

Competition between cities extend beyond Shanghai and Shangchu, with Chentyn, Chengdu, and Beijing also in providing similar support measures. This position shows how artificial intelligence has become a strategic priority on multiple levels of Chinese government – local artificial intelligence competition in China.

Trump’s strategy of artificial intelligence maintains pressure

The timing of Shanghai’s advertising coincides with the AI’s comprehensive action plan for the Trump administration, which was unveiled on July 23. The 28 -page strategy maintains narrow restrictions on the main technologies while speeding the standard cancellation and supporting the infrastructure of the American AI companies.

Donald Trump described the plan as “a policy of the United States to do everything necessary to lead the world in artificial intelligence”, with a focus on America’s intention to become “the power of exporting Amnesty International” and maintaining the protection of national security.

The plan is facing the US Department of Commerce with the closure of gaps in the current export restrictions, which enhances the supervision of the final users abroad, and a plan to explore geographical location tools to prevent access to “worrying countries” like China.

China’s self -reliance strategy shows results

Despite American restrictions, analysts expect a great growth for the artificial intelligence industry in China. Bernstein analysts, led by Lin Chengwan, expects that local chips will get 55 % of a faster market than artificial intelligence in China by 2027, significantly increasing only 17 % in 2023.

“Export controls have created a unique opportunity for local artificial intelligence seller, because they do not compete with the most advanced global alternatives,” said Bernstein’s research note.

The growth reflects continuous technological progress, as Chinese companies are increasingly identical to the performance of chips that have been reduced to China. Ascend 910C from Huawei reaches approximately 65 % of the NVIDIA higher H100 capacity, although its computer power remains limited due to direct incompatibility with the CUDA program platform in NVIDIA.

Geopolitical effects and future expectations

Bo Zhengyuan from Pleenum, an independent research platform that focuses on China, argues that Trump’s approach represents a shift from Biden’s strategy to more direct competition. “Until now, the” annihilation “has not obtained any smaller. Post morning South China Article, in reference to the scope of export control. “What is different is the speech-it’s now more face to contain.”

It seems that the competition of artificial intelligence between China and the United States is to the extent that at the global artificial intelligence conference in Shanghai, Prime Minister Lee Qiang called for international cooperation to ensure that only a few “exclusive game” has not become a clear indication of American restrictions.

However, neither American pressure nor Chinese subsidies guarantee a clear winner in this technological race. “Artificial intelligence is not something that can be built overnight by supporting politics alone – it is a long game that engineering, talent and infrastructure.”

Through Chinese data resources, algorithms, and artificial intelligence talents that remain competitive with the United States despite the restrictions of chips, the results of this technological competition may eventually depend on any American technological approach or Chinese self-reliance-more effective in leading innovation.

Bo concluded that “there will be no clear or losing winner in the next decade,” which indicates that this technological competition will determine the male scene for years to come.

See also: Ren Zhengfei: Future from AI in China and the long Huawei game