From Engine of Dominance to Arena of Regulation: China Chooses Trust, U.S. Chooses Speed in the AI Power Race

China’s National People’s Congress Backs AI Research and Core Technologies
Beijing Moves to Strengthen Ethical and Security Oversight
Washington Unveils Action Plan to Ease Regulations and Accelerate Innovation

The regulatory dimension of the global artificial intelligence (AI) power race is once again coming into sharp focus. While China is tightening oversight to strengthen trust and reliability, the United States is easing restrictions to accelerate innovation. Governments are increasingly viewing AI regulation as a key lever for managing rollout speed and ensuring access to international markets.

China to Revise Its Cybersecurity Law

According to the South China Morning Post (SCMP) on the 24th, China’s top legislative body announced plans to revise its Cybersecurity Law to reinforce governance over AI safety and ethics. Wang Xiang, spokesperson for the Legislative Affairs Commission of the National People’s Congress (NPC) Standing Committee, said in Beijing that “the draft amendment was first reviewed last month.” He explained that the proposal revises the law’s “fundamental principles of internet security” and adds new provisions on AI to align personal data protection more closely with the civil code.

Wang added that new clauses would be introduced to establish a framework for AI security and development, including support for fundamental AI research and core technological advancements. The revision would also cover basic infrastructure, ethical standards, risk monitoring and evaluation mechanisms, and improved AI-related security regulations.

This move represents a step beyond China’s earlier AI rules introduced earlier this year. In March, the Cyberspace Administration of China (CAC), the country’s top internet watchdog, mandated that all AI-generated text, images, audio, video, and other virtual content must include both explicit and implicit labels. Explicit markings must be visible to users, while implicit identifiers—such as digital watermarks—must be embedded in metadata. The measure reflects growing concerns over misinformation, copyright violations, and online fraud, and underscores Beijing’s resolve to tighten AI governance.

Boosting Trust in Chinese A

China has also introduced a series of regulations aimed at improving the credibility of domestically developed AI systems. In June, the government announced tighter oversight over data center construction and operations by major tech companies such as Alibaba and Tencent. China invested roughly $3.5 billion last year alone in expanding data infrastructure, but with many facilities underutilized, authorities are now warning against overinvestment and inefficiency.

The government has simultaneously launched a large-scale crackdown on illicit AI content, leading to the removal of more than 3,500 non-compliant AI products in just two months starting in April. Since September, mandatory labeling requirements under the CAC’s AI rules have been fully implemented, meaning all AI-generated text, images, and videos must now carry proper identifiers.

In the first half of this year, China announced more AI-related standards than it had over the previous three years combined—covering data management, content safety, and service quality. These measures are not merely about ethics and risk mitigation; they are designed to serve as critical instruments for controlling the pace of technological deployment. As Chinese Vice Premier Ding Xuexiang stated at the World Economic Forum (WEF) earlier this year, “Only when the brakes work properly can we confidently step on the accelerator,” emphasizing the necessity of robust regulatory systems.

United States Relaxes AI Regulations

China’s tightening regulatory stance can be seen as an effort to balance rapid technological progress with social stability. While Beijing expands state oversight to maintain order amid its competition with the U.S. in AI, Western counterparts are taking divergent approaches. The European Union’s AI Act, for instance, requires all high-risk AI systems to pass conformity assessments before entering the market—effectively barring international access for those that fail to meet safety standards.

The United States, by contrast, is doubling down on innovation through massive public and private investment. In February, President Donald Trump unveiled Project Stargate—a $500 billion AI infrastructure initiative aimed at building massive data centers and semiconductor facilities to power AI training and deployment.

The project aligns closely with the Trump administration’s deregulatory agenda. In July, Washington released a comprehensive “AI Action Plan” outlining more than 90 initiatives to dismantle regulatory barriers and accelerate innovation. The plan’s key provisions include revising or abolishing regulations that impede AI development and streamlining data center permitting processes. Earlier, in June, the administration reorganized the former AI Safety Institute (AISI) into the Center for AI Standards and Innovation (CAISI)—a symbolic shift from oversight to acceleration, underscoring America’s strategic decision to prioritize innovation over restraint.