China’s AI power play: Beijing banks on clean-energy boom to triumph over US | South China Morning Post

VirtualRichDream · 2026-03-04T04:26:40+00:00

A former Chinese finance vice-minister highlights China's AI advancements and energy transition as key to surpassing the U.S. in technology. Competition now focuses on application and regulation, as China's energy strengths bolster AI potential amid growing global electricity demand.

VirtualRichDream

2026-03-04 04:26:40

Abstract generation in progress

China’s rapid push into artificial intelligence and its simultaneous energy transition are central to overtaking the United States in technological supremacy, according to a former finance vice-minister.

Competition in the field of AI has shifted from purely a technological sprint to a broader contest over application scenarios and regulatory frameworks, led by the world’s two largest economies, Zhu Guangyao explained.

“China’s leading position in energy transition has laid a solid foundation for AI development, thereby creating vast application scenarios,” Zhu told the National Business Daily in a report published on Sunday.

“For the US, the challenge posed by new circumstances lies in [the principle] that ‘electricity is computing power’,” he added.

Zhu also noted that, while the US currently leads in computing power, American industry leaders have publicly admitted that the gap with China was closing.

His remarks came ahead of China’s “two sessions” meetings, which are due to take place in Beijing this week. The annual meetings of the top legislature, the National People’s Congress, and the top political advisory body, the Chinese People’s Political Consultative Conference, will set the country’s economic agenda. Technological innovation and energy security are expected to be among Beijing’s top priorities.

As AI development triggers an explosion in global electricity demand, China’s abundant energy supply is increasingly viewed as a strategic advantage.

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