China's giant, data-rich population and government-run economy make it a unique competitor in the global AI development race.

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The Basics

China is a major leader AI investment and development. And with government encouragement, China's giant population produces more AI-usable data than perhaps anywhere else on earth.

Here's how China is unique in artificial intelligence development:

  • The country's authoritarian political regime: The Chinese government closely controls the economy. This has allowed the Chinese Communist Party to funnel vast amounts of wealth and tax incentives to companies that develop AI products.
  • By investing large sums into AI companies and capping the RoI it receives, the government has given Chinese startups access to capital found nowhere else outside of Silicon Valley.
  • China's huge population: The country's massive middle class has largely embraced the conveniences and features that AI models provide, and thereby produce more useful data than any other group on earth. The more data produced, the better the technology gets.
  • The country's history of political control has, arguably, created a friendly environment for companies that want to build services that require vast amounts of user data. While the debate over privacy rages in Europe, the controversy is felt far less in China.

Relevant People

Meng Wanzhou is the CFO of Huawei

Xi Jinping is President of the People's Republic of China

Zhang Yiming is the 36-year-old founder and CEO of ByteDance

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