In the latest escalation of the global tech competition, an increasing number of major Western corporations are adopting Chinese artificial intelligence models, signaling a significant challenge to U.S. dominance in the AI sector. Major firms—from banks like HSBC and Standard Chartered to Saudi state-backed Aramco—are testing or deploying AI systems developed by Chinese companies such as DeepSeek and Alibaba. Even U.S.-based cloud providers including Amazon Web Services, Microsoft and Google now offer DeepSeek’s technologies to clients, despite warnings from the White House about security risks.
This shift, detailed in a Wall Street Journal report on July 3, highlights a stark reality: Chinese AI is gaining traction globally due to its affordability, open-source adaptability and close alignment with Beijing’s strategic priorities. The trend has sparked alarm in Washington, where policymakers warn of eroding influence in setting international AI standards, while U.S. firms accelerate investments to retain their edge.
The drivers behind China’s AI surge
Chinese AI models are emerging as cost-effective alternatives to U.S. counterparts. DeepSeek, for example, has recorded 125 million global downloads—though still trailing OpenAI’s ChatGPT at 910 million—while Alibaba’s Qwen competes directly with models like Microsoft’s Gemini.
