china sounds alarm: ai monopoly threatens global tech race

2025-07-27 general

Shanghai, Sunday, 27 July 2025.
premier li qiang voiced concerns about a potential ai monopoly. this happened amidst critical semiconductor shortages. china is proposing a world ai cooperation organization to counter this. this initiative aims to foster international collaboration. it addresses the concentration of ai resources and capabilities. the move comes as tensions rise over access to nvidia chips. these chips are crucial for ai development. the premier’s statements highlight the urgent need for global cooperation. it also reflects the strategic importance of semiconductors in the ai era.

ai leadership and geopolitical power

China and the U.S. are in a race for AI technology. This technology could significantly boost economies [1]. It could also shift the balance of geopolitical power [1]. Premier Li Qiang’s address at the World Artificial Intelligence Conference (WAIC) in Shanghai underscores China’s commitment to AI advancement [1]. The conference, which gathers industry leaders and financiers, aims to accelerate AI development [1]. The event highlights the competition between China and the U.S. in the AI sector [1].

semiconductor etf trends

Semiconductor ETFs are showing positive trends. The科创半导体设备ETF(588710.SH) increased by 1.92% on July 24, 2025 [5]. It had a net inflow of 15.57 million yuan, ranking among the top in the market [5]. Over two days, this ETF accumulated 61.4894 million yuan in net inflows [5]. Its share volume increased by 14 million, exceeding 106 million shares [5]. The fund’s scale has surpassed 110 million yuan [5]. This reflects strong investor interest in semiconductor companies [5].

global ai governance

Li Qiang emphasized the need for a globally recognized AI governance framework [7]. He noted the significant differences in management concepts and institutional rules among countries [7]. China is considering locating the headquarters of its proposed AI organization in Shanghai [7]. This organization aims to promote international collaboration in AI [1]. The WAIC featured over 800 companies showcasing 3,000 AI-related products [7]. These included 40 large language models [7]. The U.S. government has increased export controls on AI technology to China [7].

market outlook and expert opinions

Analysts at 中金公司 anticipate continued growth in the global semiconductor market in 2025 [8]. 天风证券 also projects an optimistic outlook for the semiconductor sector in 2025 [8]. They highlight the ongoing trend of domestic substitution due to supply chain risks [8]. 首创证券 suggests that emerging applications like edge AI and robotics will drive future growth in the chip market [8]. They foresee increased penetration of niche DRAM [8]. These expert opinions suggest a positive investment environment for semiconductor companies and related ETFs [5][8].

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semiconductor shortage ai monopoly