The 2026 World AI Conference (WAIC) and High-Level Meeting on Global AI Governance will convene in Shanghai from July 17 to 20 to establish a multilateral platform for dialogue on artificial intelligence. Chinese President Xi Jinping is scheduled to attend the opening ceremony and deliver a keynote address. The conference aims to build consensus on global governance and steer AI development toward a beneficial and safe direction.

Themed "AI Partnership for a Brighter Future," the event will focus on technological innovation and the translation of achievements into real-world applications. Discussions will center on fostering an inclusive ecosystem that empowers all industries and serves production and daily life. The initiative seeks to inject new momentum into global AI development by addressing shared challenges through international cooperation.

China has proposed the Global AI Governance Initiative, emphasizing principles of extensive consultation, joint contribution, and shared benefits. The country opposes the use of AI for hegemony, resource monopolization, or forming exclusionary blocs. To support these objectives, China has launched the Global AI Governance Action Plan to translate consensus into practical measures and the AI+ International Cooperation Initiative to expand sustainable development pathways.

Governance and Cooperation Initiatives

China advocates for multilateral coordination to solidify the institutional foundation for global AI governance. It supports the United Nations in playing the primary role in AI governance and is engaged in formulating global ethical norms and technical standards. A proposal for a World AI Cooperation Organization has also been introduced to facilitate multilateral cooperation.

To bridge the global AI divide, China has facilitated the UN General Assembly's adoption of a resolution on strengthening international cooperation on AI capacity-building. The AI Capacity-Building Action Plan for Good and for All aims to support developing countries. Beijing continues to promote technology open-source, knowledge sharing, and industrial synergy to ensure the fruits of smart technology are shared equitably.

Egan-Jones released an analysis on July 15, 2026, examining how China's established fast follower strategy is reshaping the competitive landscape in artificial intelligence and what the shift could mean for investors and credit markets. The report underscores the growing significance of China's ability to commercialize technologies developed elsewhere by rapidly scaling production and lowering costs, positioning the nation as a formidable competitor in the AI sector.

The publication highlights recent developments following the temporary suspension of Anthropic's Claude Fable 5 after U.S. export controls were introduced. During that period, Chinese developer Z.AI released GLM-5.2, an open source model that the report says approaches the capabilities of leading Western models while operating at a fraction of the cost. Egan-Jones notes that this instance exemplifies China's repeated ability to leverage external innovations for domestic commercial success.

Infrastructure and Capital Intensity

The analysis argues that artificial intelligence increasingly resembles a capital-intensive industrial business requiring significant investment in data centers, semiconductors, and electricity. According to the report, China's manufacturing capacity, power generation, and state-supported infrastructure provide advantages that may become increasingly important as AI deployment expands. By comparison, permitting requirements, grid constraints, and other regulatory hurdles may slow infrastructure development in the United States and Europe.

Strategic Industry Approach

Egan-Jones also examines China's approach to treating artificial intelligence as a strategic industry. The report cites government intervention in cross-border transactions and new restrictions affecting ownership and talent mobility, noting that these developments may limit direct investment opportunities in Chinese AI companies. Consequently, the importance of U.S.-listed firms for investors seeking AI exposure may increase.

Convergence with Hardware

The publication further explores the convergence of artificial intelligence and physical hardware, including robotics and autonomous systems. It notes that China already plays a leading role in the production of industrial robots and consumer robotics, suggesting that future value creation may increasingly depend on the integration of AI with manufactured products rather than software alone.

Egan-Jones concludes that while the United States continues to lead in frontier AI research, China's manufacturing scale, infrastructure, and ability to commercialize new technologies position it as an increasingly significant competitor in the next phase of artificial intelligence development.