China Proposes Global AI Governance Model in Direct Counter to U.S. Policies

Published: 03 Nov 2025

Author: Precedence Research

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Chinese President Xi Jinping took a stand in favor of establishing a global body to govern artificial intelligence at a meeting of APEC leaders, while positioning China as a potential alternative to the U.S. as a trade partner. China first proposed it, while the U.S. seemed uninterested and has rejected efforts to adopt AI regulations within international bodies. Mr. Xi said that global AI corporations could adopt a governance framework to enhance cooperation rather than competition, which would be highly beneficial for future AI development within all countries and regions. 

He further emphasized that the organization could be based in China's commercial hub, particularly in Shanghai. In remarks offered by official news agency Xinhua, Xi further added,” Artificial intelligence is of great significance for future development and should be made for the benefit of people in all countries and regions." 

However, the U.S. president flew directly back to Washington after he met with Chinese President Xi, rather than attending the APEC leaders' summit in South Korea. The two leaders’ talks resulted in a one-year deal to partially ease trade and technology controls that had heightened disputes between the world’s two biggest economies. 

Due to Trump's absence from the summit, analysts expected China to promote itself as a champion under Mr. Xi for its own brand of multilateral cooperation on trade and economic development. While California-based NVIDIA is popular for its advanced chip production and is central to the AI progress, China-based Deepseek has come forward to offer lower-cost models taken up by Beijing's push for” Algorithmic Sovereignty.” 

Xi further requested that APEC promote the “free circulation” of green technologies, a category that includes technologies from batteries to solar panels, which China dominates. APEC members approved a joint statement and pacts on AI and the challenges posed by aging populations at the meeting. 

Furthermore, China will host the APEC summit in 2026, which will be held in Shenzhen. It's a major hub for manufacturing, from robotics and Electric Vehicle to large-scale production. This city, with a population of nearly 18 million, was a fishing village and has since become China’s special economic hub.