Based on its 2017 development plan for Artificial Intelligence (AI), China aims to become the world’s main AI innovation centre by 2030. To achieve this goal, China’s strategy is to cultivate an open and sharing AI innovation ecosystem through the construction of AI Open Innovation Platforms (OIPs) and AI Pilot Innovation Zones (PIZs), of which there are currently 23 and 18, respectively. PIZs can be deemed as the innovative environment and OIPs as the medium, which exist in a symbiotic relationship. OIPs focus on one specific key subfield of AI, and the construction is contracted out to a leading private enterprise or research institute in each subfield. In the benign scenario, AI start-ups and small and medium-sized enterprises (SMEs) can access quality data, algorithms, and computing power to train their AI services and products. Meanwhile, the PIZs share their successful experiences with other regions to replicate. Technology diffusion then enhances AI innovation capabilities and SMEs can bring more competition into their fields. However, as OIPs are mostly constructed by leading private AI enterprises and their standard-setting power is reinforced when all start-ups and SMEs in the same field use their software and hardware, they may abuse this dependency and become uncontrollable giants. In such an adverse scenario, selected subfield leaders can turn into consolidating monopolies, thus reducing competition. Moreover, China’s internal “brain drain” towards major innovation hubs within the country might accelerate, resulting in even larger disparities among regional talent pools. Recent policies, such as the Personal Information Protection Law, and an AI-related 2022 revision to China’s Antimonopoly Law aim to reduce these dangers.
Policy recommendations:
- Increase the EU’s understanding of China’s fast changing AI landscape by collecting regularly updated information on new developments in AI innovation in China, and funding related research through EU funding instruments.
- Deepen analysis of the role that the Chinese government plays in cultivating the AI innovation ecosystem.
- Ensure that European enterprises have the same chances to apply for the construction of a Chinese OIP, and equal access to the OIPs if carrying out business activities in China (maintaining a level playing field).
Encourage Chinese policymakers to share their experiences on AI governance with EU policymakers.
Stay tuned with us by reading more: ReConnect China_Policy Brief 11_The Chinese AI Innovation Ecosystem