Xi to tout China's AI rise at Shanghai conference amid US security fears

President Xi Jinping is poised to make his first appearance at the World AI Conference in Shanghai, an event beginning Friday that carries significant symbolic weight in the global tech arena. Previously, the conference has drawn high-profile figures including Elon Musk and Jack Ma, and this year Xi's debut address signals China's elevation of AI as a centerpiece of international engagement.

The timing is strategic. Chinese AI models are experiencing unprecedented global adoption. On OpenRouter, a popular marketplace for AI services, Chinese models have captured nearly 60% of U.S. firms' AI usage—a record level. This growing market share reflects broader acceptance of Chinese AI technology among international companies, giving Xi substantive evidence to claim that China deserves a seat at the table in shaping global AI governance and standards.

In advance of Xi's appearance, China's state media has laid out a carefully crafted narrative. People's Daily, the Communist Party's flagship mouthpiece, warned this week against an "AI Iron Curtain" and drew a contrast between two approaches: an "oil mindset" that hoards data and computing power versus a "water" approach that treats AI as a public good accessible to all. The framing pointedly avoided naming any country, yet the message was clear—positioning China as the proponent of openness and inclusivity against an implied Western model of control and restriction.

Underlying this public confidence, however, lies what the article characterizes as a "security dilemma." The rise of Chinese AI power simultaneously stirs security alarm in Washington and Beijing alike. This dual concern suggests that while China celebrates its technological gains, it also grapples with the risks and uncertainties that accompany such capability. Xi's appearance at the conference will test whether China can convert its technical achievements into broader influence over how AI technology is developed, regulated, and shared in the years ahead.

China's rising AI capabilities have created a dual opportunity and tension for President Xi. On one hand, the surge of Chinese AI models—now capturing nearly 60% of U.S. firms' AI usage on major marketplaces—gives Xi credibility to claim leadership over how AI develops and is governed globally. His debut at the World AI Conference is itself a signal: the event carries prestige (it has hosted Elon Musk and Jack Ma in the past), and his attendance elevates it to a statement of geopolitical intent.

On the other hand, this same ascendance creates what the article frames as a "security dilemma"—alarm in both Washington and Beijing. The implication is that China's growing AI power raises concerns for the U.S. while also triggering internal Chinese security worries. State media messaging this week—contrasting China's "water" approach (openness, treating AI as a public good) with a Western "oil mindset" (hoarding data and computing power)—suggests Beijing is already framing the narrative around whose AI model and governance approach is more legitimate. This rhetorical positioning ahead of Xi's appearance indicates an effort to win allies and set the terms of the global AI debate.