China-US AI synergy driven by realities of marketplace

Tesla's Optimus robot also relies heavily on Chinese suppliers, with Morgan Stanley estimating that Chinese suppliers account for 63 to 70 percent of its core components. If no Chinese components were used at all, the production cost of Optimus Gen 2 would rise from $46,000 to $131,000, Morgan Stanley said.

Hua Ning, senior director of Asia Pacific business operations at the Institute of Electrical and Electronics Engineers, the world's largest technical professional organization, said China has three core advantages in AI and embodied robotics.

"First, government policy guidance; second, China's massive and unparalleled scale of engineers; and third, China's very comprehensive industrial chain. Such strengths make the country a crucial player in humanoid robots," Hua said.

In the first half of this year, China shipped more than 40,000 humanoid robots, accounting for 97 percent of global output, according to the Chinese Institute of Electronics. The Ministry of Industry and Information Technology projected that full-year production will exceed 100,000 units.

Zhou Xinhong, vice-president of information technology company HP China, said China has now become an important testing ground for industry-specific AI applications.

"China's manufacturing base generates large volumes of specialized data in sectors including electric vehicles, logistics, healthcare and industrial production. Those advantages could allow multinational companies to develop AI applications in China and later replicate them in other markets," he said.

Zhou said that the combination of industrial scale, digital infrastructure and willingness to adopt AI has created a market that is difficult to replicate elsewhere.

In May, China's Foreign Ministry spokesman Guo Jiakun said that China and the US have agreed to launch intergovernmental dialogue on AI, sending a positive policy signal.

Sun Chenghao, head of the US-Europe Program at Tsinghua University's Center for International Security and Strategy, said that despite challenges, the ongoing interaction demonstrates that China-US AI cooperation is not a zero-sum game. Competition will not disappear, but companies on both sides are proving through pragmatic action that in a highly globalized AI industry, decoupling is unrealistic and cooperation offers the way forward.

masi@chinadaily.com.cn