Invest1 publisher3 min readPublished
Washington asks about 35 countries to pick an AI camp; Beijing says no
A letter to roughly 35 signatories of a US-led AI pact bars them from Chinese-backed frameworks. Beijing's reply is digital sovereignty, which leaves vendors holding the lock-in question.
The Investor · Invest desk
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What happened
- China's foreign ministry spokesperson Lin Jian said at a Beijing briefing that China opposes taking sides or forming camps on AI, and that each country has the right to choose its partners based on its national conditions and development needs.
- Washington wrote to about 35 signatories of a joint statement on AI partnership, telling them they could not stay in the US-led AI initiative while also joining Chinese-backed efforts.
- Reuters, which reviewed an internal US draft and spoke to a US official, reported that the US government is preparing to tell dozens of countries they must line up behind a US-led AI coalition or be shut out of it if they sign onto Beijing's rival framework.
- Lin Jian called for respect for each country's digital sovereignty and urged both sides to drop what he described as zero-sum thinking in favour of a fairer global system for governing AI.
- Beijing has previously endorsed digital sovereignty in a published paper on global cyber governance built around national control over data and infrastructure.
Compiled by The InvestorSomething wrong?How this is made
Why it matters
Washington has written to about 35 signatories of a joint statement on AI partnership, telling them they cannot remain in the US-led initiative while also joining Chinese-backed efforts [2]. Beijing has declined the choice: foreign ministry spokesperson Lin Jian said at a briefing that China opposes taking sides or forming camps on AI, and that each country has the right to choose partners based on its own national conditions and development needs [1].
The letter is not the whole of it. Reuters, which reviewed an internal US draft and spoke to a US official, reported that the government is preparing to tell dozens of countries they must line up behind a US-led AI coalition or be shut out of it if they sign onto Beijing's rival framework [3]. That converts a diplomatic preference into an exclusivity clause, and exclusivity clauses have to be enforced, which is a different administrative burden than issuing a joint statement.
Lin's counter-framing is the predictable one and also the cheaper one: respect for each country's digital sovereignty, and an end to what he called zero-sum thinking in favour of a fairer global system for governing AI [4]. Beijing has already published a paper on global cyber governance built around national control over data and infrastructure [5], so the vocabulary is not improvised. Cryptopolitan's assessment is that by presenting itself as the side not demanding exclusivity, China can win over the same governments Washington is lobbying [6]. Treat that as the publisher's read rather than an observed outcome, but the asymmetry is real: one side is asking buyers to sign something, the other is asking them to sign nothing.
For operators selling AI systems into those roughly 35 markets, the consequence is that a stack choice now behaves like a foreign-policy commitment. A ministry that adopts a US vendor under an exclusivity condition inherits switching costs it did not price, and a ministry that hedges will want portability, second suppliers, and open weights it can run itself. The hedging instinct is not hypothetical inside the US either: Beijing has noted that nearly 200 US startups asked their own government not to cut off access to Chinese open-source models, warning it would hurt American competitiveness [11].
The wider dispute is already past rhetoric. In late July China's Ministry of Commerce urged Washington to stop threatening Chinese AI firms with sanctions, calling the pressure a form of "AI hegemony" that it said lacked factual or legal grounds [7]. Those threats followed claims by US companies that Chinese labs distill American models and use the outputs to train cheaper ones [8], and a White House memo from science adviser Michael Kratsios accused China-based entities of industrial-scale distillation campaigns [9]. Chinese regulators are moving to bar domestic firms from taking US investment without approval [10]. US officials added foreign-built advanced robots to a restricted list, blocking new Chinese-made robot models from the US market [12]; the robotics maker Unitree was affected and still saw its shares jump 629% on their first day in Shanghai, about 7.3 times the issue price [13][15], with a valuation near $66 billion at one point [13]. Officials are also still checking whether China obtained restricted Nvidia chips [14].