CSET

In & Out of China: Financial Support for AI Development

Ngor Luong

Margarita Konaev

August 10, 2023

Drawing from prior CSET research, this blog post describes different domestic and international initiatives the Chinese government and companies are pursuing to shore up investment in AI and meet China’s strategic objectives, as well as indicators to track their future trajectories.

China’s government is using public-private investment funds, known as guidance funds, to deploy massive amounts of capital in support of strategic and emerging technologies, including artificial intelligence. Drawing exclusively on Chinese-language sources, this report explores how guidance funds raise and deploy capital, manage their investment, and interact with public and private actors. The guidance fund model is no silver bullet, but it has many advantages over traditional industrial policy mechanisms.

As part of its strategy to achieve global leadership in AI, the Chinese government brings together local governments, academic institutions, and companies to establish collaboration platforms. This data brief examines the role of China’s Artificial Intelligence Industry Alliance in advancing its AI strategy, and the key players in the Chinese AI industry.

China’s government has pushed the country’s technology and financial firms to expand abroad, and Southeast Asia’s growing economies — and AI companies — offer promising opportunities. This report examines the scope and nature of Chinese investment in the region. It finds that China currently plays a limited role in Southeast Asia’s emerging AI markets outside of Singapore and that Chinese investment activity still trails behind that of the United States. Nevertheless, Chinese tech companies, with support from the Chinese government, have established a broad range of other AI-related linkages with public and commercial actors across Southeast Asia.

Quad AI

May 2022

Through the Quad forum, the United States, Australia, Japan and India have committed to pursuing an open, accessible and secure technology ecosystem and offering a democratic alternative to China’s techno-authoritarian model. This report assesses artificial intelligence collaboration across the Quad and finds that while Australia, Japan and India each have close AI-related research and investment ties to both the United States and China, they collaborate far less with one another.