China’s artificial intelligence goals and strategic choices for Europe

In its 15th Five-Year Plan (2026-2030), China has placed artificial intelligence at the centre of its industrial strategy, but with apparently clashing goals. China wants technological self-reliance and substantial safeguards around its domestic market, but also freely adaptable AI models, international diffusion of Chinese AI models and greater cooperation in global AI governance.

However, while these objectives appear contradictory, a closer look reveals that they’re different facets of a unified strategy. Chinese President Xi Jinping detailed the strategy at the 17-20 July 2026 World AI Conference in Shanghai. He presented AI as a “rare, historic opportunity” for open development, collaboration and sharing, and promoted the newly established Shanghai-based World Artificial Intelligence Cooperation Organization (WAICO) as a vehicle for a “just and equitable” system of global AI governance (Xi, 2026). 

In this analysis, we examine how China seeks to assert AI leadership with itself at the centre of innovation, diffusion, standard-setting and adoption, while also insulating its domestic market. We also compare this strategy with those of the United States and the European Union.