The Daily Planet #104: The China Shock, Part 5

A quick primer on China's AI trajectory. I will cover this theme in greater detail the week after next.

China's approach to artificial intelligence (AI) is distinctively shaped by its strengths in manufacturing, infrastructure, and governance, setting it apart from the U.S., which excels in cloud computing and software development. While the U.S. focuses on abstract, cloud-based AI such as large language models, China prioritizes "embodied AI" - systems that interact with the physical world through sensors and actuators. This emphasis reflects China's long-standing belief in leveraging technology to solve governance challenges and its need to integrate AI with its vast physical infrastructure.

Central to China's AI strategy is the development of "embodied intelligence," which has been elevated to a national priority. Cities like Zhongguancun and Wuhan are pioneering projects that embed AI algorithms in real environments, enabling machines to learn and adapt through real-time interaction. This approach is evident in sectors such as autonomous vehicles, where China's "vehicle-road-cloud integration" model equips intersections with smart devices to communicate with cars, enhancing safety and traffic management. Companies like Baidu and Huawei are key players in this infrastructure-centric development.

China also invests heavily in brain-inspired AI, exemplified by the China Brain project, which seeks to mimic human cognition and learning processes. Robotics is another area where China leads, with a vast deployment of industrial robots and innovations in humanoid and service robots, supported by platforms like Huisi Kaiwu and initiatives in Shenzhen.

This infrastructural and embodied AI focus offers China a comparative advantage in deploying AI at scale across mobility, urban governance, and manufacturing. However, challenges remain, particularly in cultivating high-end AI software talent. Despite this, China's integration of AI with physical systems and its cybernetic legacy reflect a unique vision of technology as a tool for social coordination and economic development. This divergence from the U.S. model suggests a future where AI development follows multiple, complementary paths globally.

China's Diverging AI Path