The Road
China’s AI surge
The Red Dragon’s investments in education, research and technology are shaping its role as a global competitor in the AI landscape
By Gauri Kohli
Since the launch of ChatGPT two years ago, the global race for AI dominance has intensified, with China positioning itself as a strong competitor to the US. Through vast investments in AI research and development, China aims to secure its role as a leader, and higher education institutions are at the core of this effort.
Universities are increasingly being counted on as both training grounds for AI talent and incubators for AI technologies.
China’s universities are rapidly adapting to meet national AI ambitions, creating a ripple effect in global competition, academia, and talent acquisition.
Accelerated AI push
Following the buzz around generative AI tools, Chinese universities and companies have prioritised the development of their own generative AI models.
Since recognising AI as a specialised major in 2018, the Chinese government alone has dedicated billions of dollars in investment for AI. A few years ago, the country declared its intention to become the world’s primary AI innovation centre by 2030.
To achieve this, the Chinese Ministry of Education (MoE) encourages its universities to delve into the intersection of AI with various fields such as mathematics, statistics, computer science, psychology, physics, biology, sociology and law. It also supports institutions to establish AI centres and think-tanks to drive AI innovation and policy development. Other key areas of focus are increasing international partnerships, supporting domestic students studying AI abroad, increasing scholarships for international students, and creating a conducive environment for AI research and development.
Zengchang Qin, a Beijing-based AI researcher, notes the impact of government-led investment on university-based AI research which is “spurring the creation of new AI research centres and encouraging collaborations between universities and industry, especially in fields like natural language processing, computer vision and intelligent robotics.”
“New AI research centres and industry collaborations are bridging theoretical research and practical applications,” says Qin.
"China is advancing rapidly in AI, propelled by competitive investments and strong academic support."
Greater focus on institutions
Since the Ministry of Education (MoE) designated AI as a major in 2018, driven by the 2017 New Generation AI Development Plan, over 2,300 undergraduate programmes have emerged, aligning academic goals with national objectives.
In the last few years, universities, particularly those with robust AI programmes, are experiencing greater push by the government to contribute to national AI objectives. According to Qin, “Chinese universities are aligning their programmes with national AI development strategies by establishing new departments, majors, and interdisciplinary AI curricula.”
For instance, universities have rolled out courses dedicated to machine learning, and robotics, all while creating partnerships with key state-owned enterprises and private tech giants to facilitate AI research to satisfy social needs. “The fact is, AI programmes are becoming the one of most competitive majors in universities,” observes Qin.
To further boost its AI ambitions, China is also laying more emphasis on local talent, encouraging Chinese students, researchers and scientists who studied or worked abroad to return home.
A Stanford University study by the Center on China’s Economy and Institutions in July 2024, highlights this “reverse brain drain” strategy underscores the government’s intent to retain expertise within China, particularly for Chinese scientists in the US.
"Ethics courses are now embedded in AI programmes, and universities are conducting research on explainable AI."
Progress in domestic AI tech
Other examples of retaining and refining AI talent at home are evident from the fact that many Chinese higher education institutions and companies have launched their own AI models in recent years with more than 100 large language models (LLMs) developed.
Examples include Fudan University’s MOSS and Baidu’s (the Beijing company that runs China’s internet search engine equivalent to Google) Ernie chatbot.
China has also been doing significant work in basic research, algorithms and industrial application of AI models, and generative AI has brought about disruptive changes to the entire industry.
An August 2024 report titled ‘How Innovative is China in AI’ by the Information Technology and Innovation Foundation (ITIF), a public policy think-tank based in Washington, D.C., focused on public policy surrounding industry and technology, highlights China’s fast pace in the development of the LLMs.
Chinese LLMs are closing the performance gap with US models, with some Chinese models outperforming their US counterparts in bilingual benchmarks, says the report.
Explaining the overall growth in AI, Hodan Omaar, senior policy manager focusing on AI policy at ITIF’s Center for Data Innovation and author of the report, tells QS Insights Magazine, “China is advancing rapidly in AI, propelled by competitive investments and strong academic support, especially from institutions like Tsinghua, which is a hub for incubating top AI start-ups and cultivating skilled talent. This growth is further fuelled by state-directed funding that supports AI development across the country, including areas typically overlooked by private investors.”
Navigating regulations and ethical considerations
As per China’s Interim Measures for the Management of Generative Artificial Intelligence Services, service providers are required to “source training data and foundation models from legitimate sources, respect intellectual property rights, and process personal information in compliance with Chinese data protection laws and regulations.”
Ensuring that generative AI tools align with government standards on information sensitivity and societal values requires a careful balancing act between innovation and censorship. According to Qin, universities are responding to these restrictions by emphasising responsible AI research. “Ethics courses are now embedded in AI programmes, and universities are conducting research on explainable AI,” he explains.
These measures, while essential for compliance, also present queries about the degree of academic freedom in AI research. How effectively universities can manage these restrictions will likely influence the broader trajectory of AI in China, as well as the country’s global standing in the field.
Competition with the US
The US, historically a leader in AI innovation, now faces significant competition from China. Institutions like Tsinghua University in Beijing have created hubs for generative AI startups, while Shanghai’s Fudan University leads in AI curricula and new programmes, showing China’s commitment to rivalling the US in talent and research.
Fudan University announced plans to introduce 100 AI courses in the 2024–2025 academic year, aiming to establish itself as a leader in science intelligence education.
Tsinghua University has emerged as a prominent generative AI startups hub with companies such as Moonshot AI, MiniMax, Baichuan AI and Zhipu AI, having strong links to the institution.
Qin also observes a noticeable rise in student enrollment in fields like computer science and data science, which has driven universities to “actively recruit international talent and promote faculty exchanges, increasing diversity and expertise within AI research labs.”
While such steps have shown China’s commitment to AI, it has also underscored the challenges in achieving parity with countries like the US.
Rather than rushing to deployment, some Chinese universities are taking a more measured approach, focusing on refining their models and ensuring readiness before widespread release. “It is difficult to compare models directly,” remarks Qin.
While the US is leveraging its world-class research institutions, dynamic tech industry, and supportive regulatory framework, China has rapidly emerged as a strong contender in recent years.
The 2024 AI Index Report from Stanford University’s HAI highlights the increasing parity between the US and China in the AI landscape. Both nations are making significant strides in AI research, investment, and talent acquisition. While the US lead in terms of the number of AI models originated from its institutions at 61, China also had 15 AI models, as per the report.
In 2023, the US saw AI investments reach $67.2 billion, nearly 8.7 times more than China, the next highest investor.
According to the ITIF report, “China’s relentless drive and strategic investments in AI suggest it is only a matter of time before it catches up, if not surpasses, the US’ early lead.”
Omaar also notes that China’s efforts in talent retention have also evolved, with more elite researchers choosing to stay domestically due to expanding opportunities and improved infrastructure. “This shift challenges the US’ traditional role as the main destination for Chinese AI researchers, as China’s own ecosystem becomes increasingly competitive,” she adds.
Overall, the significant strides by the country in AI are strengthening its position as a global competitor and innovator.