How Countries Navigate Between the US and China in AI
Washington and Beijing are forming competing technological alliances, but other states seek to cooperate with both. This helps them attract investments and gain access to diverse AI technologies—though the room for maneuver is gradually shrinking.
The rivalry between the US and China in the field of artificial intelligence is increasingly influencing other countries. Washington offers access to advanced chips, computing power, and technological partnerships. Beijing attracts with more affordable open-source AI systems and the opportunity to develop its own digital infrastructure.
Many states are not prepared to abandon the advantages of one side for the other. They attempt to combine American and Chinese technologies while preserving freedom of choice. However, as experts note in a report by Fortune and the Associated Press, as competition intensifies, adhering to such a strategy will become more difficult.
Kazakhstan Cooperates with Both
One of the most illustrative examples is Kazakhstan. In June, Minister of Artificial Intelligence Zhaslan Madiyev visited Washington, where the country joined the Pax Silica initiative aimed at strengthening technological supply chains. Three weeks later, he traveled to Shanghai: Kazakhstan became one of the founders of the World Organization for AI Cooperation, established at China’s initiative.
Each partnership has its own advantages. Participation in Pax Silica opens opportunities for developing high-tech production and attracting investments. Cooperation with the Chinese initiative allows involvement in discussions on international AI rules and standards.
Kazakhstan itself is of interest to partners due to its reserves of critical minerals and affordable electricity for data centers. The report mentions an investment agreement involving Nvidia worth up to 10 billion dollars for creating a 'data center valley.' Simultaneously, according to local authorities, direct Chinese investments in the country reached a record 2.8 billion dollars in 2025.
Washington Demands a Choice, Beijing Attracts Partners
The US makes it clear that combining participation in competing initiatives will be challenging. The State Department stated that the status of a trusted Pax Silica partner is incompatible with significant involvement in projects promoting a competing vision of AI development.
China, on the contrary, emphasizes the openness of its alliance and opposes the concentration of technologies in the hands of a few powers. According to Kyle Chan, a researcher at the Brookings Institution, the difference is explained by the positions of the parties: the US already has a strong network of allies, whereas Beijing needs to attract states into an alternative coalition.
This increases the importance of countries that have not yet made a final choice. Their resources, markets, and willingness to participate in technological projects become subjects of competition.
Indonesia, Singapore, and Saudi Arabia Seek Balance
Indonesia, which possesses reserves of nickel and copper, has already joined the Chinese organization but intends to benefit from cooperation with both powers. Representatives of the country believe that participation in different initiatives should allow choosing the most suitable solutions.
A similar approach is observed in Singapore. American AI companies are expanding their presence there—specifically, Anthropic is opening a new Asian office. Meanwhile, authorities are considering joining the Chinese alliance.
Saudi Arabia also combines technologies from both sides. The company Humain introduced a platform based on an open Chinese model, while the kingdom simultaneously signed an agreement with Nvidia to expand computing infrastructure.
Japan closely cooperates with the US on advanced semiconductors and security. However, according to Professor Takahiro Tsutiya, this does not mean abandoning more accessible Chinese models for low-risk tasks. France is attempting to strengthen its own positions through the developer Mistral.
The Key Question: Technological Independence
For many states, the choice of partner is linked to dependence on foreign technologies. Even large economies do not always have their own cutting-edge AI models and sufficient computing resources. Access to them may depend on political decisions in Washington and Beijing.
China offers one way to reduce dependence on American suppliers—open models and funding for local projects. According to data from the research laboratory AidData, Chinese state structures provided grants and loans for AI-related projects in at least 77 low- and middle-income countries.
Therefore, many governments strive to maintain multiple cooperation options. Their goal is to obtain necessary technologies and investments while developing their own capabilities. But the stricter the US and China become in dividing partners into allies and adversaries, the harder it will be to maintain this balance.
