The Institutional Rivalry Underlying Divergent AI Paths in China and the US

Citing The Economist, this commentary argues that China's state-led AI strategy emphasises strengthening long-term national competitiveness and industrial productivity, aligning with NTU Emeritus Prof of Economics Prof Tan Kong Yam’s view that China prioritises strategic national power over short-term economic growth. China's AI companies are achieving competitive performance with significantly lower investment than their U.S. counterparts by focusing on cost efficiency, open-source development, and widespread AI applications rather than building the most advanced AI models.

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