Read The Times Australia

Daily Bulletin

How China is betting cheap AI will get the world hooked on its tech

  • Written by: Nicholas Morieson, Research Fellow, Deakin Institute for Citizenship and Globalisation, Deakin University
How China is betting cheap AI will get the world hooked on its tech

Artificial intelligence (AI) is at a very Chinese time in its life. Recent moves from Chinese AI labs are throwing the dominance of American “frontier labs” such as Google and OpenAI into question.

Last week ByteDance, the company behind TikTok, released an AI video-generating tool called Seedance 2.0 which produces high-quality film-like clips from text prompts, with a casual disregard for copyright concerns. This week Anthropic, the US company behind the chatbot Claude, said three Chinese AI labs created thousands of fake accounts to harvest Claude’s answers in a practice called “distillation” which can be used to improve AI models.

These events have led to suggestions that China may be gaining the upper hand in the battle to dominate AI. So, is China winning the “AI race”?

Cheap, widely used tools

While most advanced frontier models are still made by American companies, China is pushing hard to develop cheap, widely used AI tools, which could create global dependence on Chinese platforms.

Reuters reports the industry is bracing for a “flurry” of low-cost Chinese AI models, with Chinese systems repeatedly driving usage costs down.

What’s the plan? China’s official AI policy documents suggest China sees AI as “a new engine for building China into both a manufacturing and cyber superpower”, and “a new engine of economic development”.

Since 2017, China has recognised that the technology is at the centre of “international competition”. “By 2030,” one key policy document says, China’s AI “technology and application should achieve world-leading levels, making China the world’s primary AI innovation center”.

This focus on becoming the dominant player in AI helps explain why Chinese firms are pushing hard on price. If you can make your AI cheap enough, you might just make it globally ubiquitous.

Cost helps determine who adopts AI first, and which models are first implemented in software and services. Even if the United States remains ahead on most elite benchmarks, Chinese products could still become globally influential if they are widely used and widely depended upon.

High-tech soft power

But China does not present its AI technology to the world as only benefiting itself. Instead, it’s pitched as a contribution to humanity.

A 2019 statement of “governance principles” from a national AI governance expert committee argues that AI development should enhance “the common well-being of humanity” and “serve the progress of human civilization”.

These phrases portray AI as a technology that advances the human story itself, rather than only serving Chinese interests. It suggests Chinese AI leadership is good for everyone.

This is an example of Chinese soft power. Tools such as Seedance may threaten Hollywood’s business model, but they do something else too. High-quality, low-cost generative media can spread quickly.

If Chinese systems become widespread, they can influence creators, developer habits, and platform dependencies, especially in non-Western markets that need affordable tools and may dislike American tech dominance.

The spread of the ‘Chinese model’

For liberal democracies such as the United Kingdom, Australia and Canada, the growth of Chinese AI tools creates a strategic headache. It will not be easy to manage security concerns about Chinese technology while avoiding technological isolation if Chinese AI tools become widely adopted.

There is a darker side to China’s AI tools. US think-tank Freedom House describes China as having the world’s “worst conditions for internet freedom”, and suggests other nations are now “embracing the ‘Chinese model’ of extensive censorship and automated surveillance”.

In 2022, the Cyberspace Administration of China issued rules for the algorithms that curate news feeds and short video platforms. Providers are required to “uphold mainstream value orientations” and “vigorously disseminate positive energy”.

These algorithms are important because they shape what people see and what is suppressed. As a result, these rules suggest the Chinese government is deeply concerned with controlling information across its social media platforms and AI tools.

A dilemma for third parties

Not every Chinese AI tool is a propaganda weapon. Rather, China is building world-class AI technology within an authoritarian system that prioritises the control of information.

This means China’s ability to make generative AI commercially powerful will likely also, despite its claims about serving “human civilisation”, make censorship and narrative management cheaper and easier.

China’s business and soft-power model is a much bigger story than just Seedance’s cavalier attitude towards copyright or Anthropic’s concerns about intellectual property. China’s goal is to build AI tools that rival those created by America’s tech giants, and to make them inexpensive and adopted globally.

For other countries, this may create a dilemma. Once a technology becomes a standard, it can be difficult to justify using a different product.

The question that remains is whether liberal democracies can adopt China’s low-cost products without drifting into dependence on systems shaped by an authoritarian political model.

Authors: Nicholas Morieson, Research Fellow, Deakin Institute for Citizenship and Globalisation, Deakin University

Read more https://theconversation.com/how-china-is-betting-cheap-ai-will-get-the-world-hooked-on-its-tech-276878

Business News

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand ma...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Bridge...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...