'US or China': Countries at a Crossroads Amid the AI Bloc Rivalry

KO YONG-CHUL Reporter

korocamia@naver.com | 2026-10-27 05:50:45

As the United States and China—the two leading powers in the field of artificial intelligence (AI)—each form their own independent AI blocs, an analysis shows that countries around the world are standing at a crossroads. While some nations are striving to leverage the benefits of both sides, it is expected that most countries will be placed in a situation where they must ultimately choose between the U.S. and China.

The Associated Press reported on the 25th (local time) that as the AI competition between the U.S. and China intensifies, countries worldwide may find themselves forced to choose between the U.S.-led "Pax Silica" and the China-led World AI Cooperation Organization (WAICO). It pointed out that "many countries are caught in a dilemma over whether to choose America's most advanced chips and AI technology, or to adopt China's cheaper and more open AI systems."

The U.S. has stated that only trustworthy nations can participate in Pax Silica, which implicitly targets China. It has demanded that allies make an ultimatum, stating they cannot straddle both sides. In contrast, China emphasizes the openness and inclusiveness of WAICO.

Kyle Chan, a researcher at the Brookings Institution’s John L. Thornton China Center, explained, "The reason the two AI superpowers send different messages is because China needs to draw in third countries to build an alternative coalition, whereas the U.S. already possesses a strong alliance network."

Anton Leicht and Sam Winter-Levy of the Carnegie Endowment for International Peace noted, "For countries like the UK and Germany, which possess substantial economic and military power but have not independently developed powerful cutting-edge AI models, cooperating with the U.S. may be essential to gaining access to U.S. corporate data centers and chip transactions."

In contrast, France is seeking its own path through the AI startup Mistral. Japan is cooperating closely with the U.S., but does not rule out using cheaper Chinese AI models in lower-risk areas.

Some nations are struggling to avoid a binary choice, such as Indonesia, Singapore, Saudi Arabia, and Kazakhstan. Indonesia is attempting to utilize AI technologies from both the U.S. and China. Mari Pangestu, Deputy Chair of Indonesia's National Economic Council, recently stated at an event, "We must participate in both sides and choose the system that fits best."

Singapore has received investment from the U.S. AI firm Anthropic, but is also considering joining WAICO. In Saudi Arabia, while the AI startup Humain unveiled a platform last month based on an open model developed by a Chinese AI firm, plans are also underway to expand AI computing in cooperation with U.S.-based Nvidia.

Just three weeks after joining a U.S. group to strengthen the AI supply chain in June, Kazakhstan became a founding member of a China-led global AI agenda-setting initiative. The intention is to secure more technology partnerships, advanced tech manufacturing jobs, and a foothold in the global AI supply chain by participating in Pax Silica, while simultaneously having a voice in setting regional and global AI standards through WAICO.

Dana Masalimova, a researcher at Harvard’s Davis Center for Russian and Eurasian Studies and a former Kazakh diplomat, stated that Kazakhstan does not want a binary choice and is benefiting from investments by both the U.S. and China, but described it as "a very precarious situation."

[ⓒ Global Economic Times. 무단전재-재배포 금지]

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