China launches World AI Cooperation Organization as 29 nations sign governance framework

China Establishes Global AI Cooperation Body with 29 Founding Members

Twenty-nine countries signed an agreement on July 16 to establish the World AI Cooperation Organization (WAICO), marking a significant move by China to shape global AI governance 1

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. The Shanghai-based intergovernmental organization aims to promote international cooperation in AI and ensure what China describes as "beneficial, safe, and fair AI development" 3

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. Chinese Foreign Minister Wang Yi signed on behalf of Beijing, with UN Secretary-General António Guterres attending the ceremony 1

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The founding members of this China-led World AI Cooperation Organization include Russia, Belarus, Serbia, Cuba, Brazil, and Venezuela, along with 10 African and 12 Asian countries such as Kazakhstan, Pakistan, Indonesia, and Laos 2

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. Notably absent from the list are major Western nations and their allies. China first proposed WAICO at last year's conference, but no country had formally announced membership until this signing ceremony 1

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Xi Jinping Champions Open-Source AI Models at World Artificial Intelligence Conference

The signing took place on the eve of the 2026 World Artificial Intelligence Conference in Shanghai, where Xi Jinping opened the event in person for the first time 1

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. In his keynote address, Xi called for "openness, collaboration and sharing" in AI development, explicitly advocating for open-source AI models as a path forward 4

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. "We should seize this rare, historic opportunity to encourage open source, openness, collaboration and sharing," he stated, positioning China's approach as one that ensures AI benefits everyone 4

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Xi also emphasized the need for monitoring and early warning systems to prevent abuse, calling for "laws and regulations, technological monitoring, early warning and emergency response systems" to ensure AI remains "under human control" 4

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. He advocated for multilateral efforts through the United Nations and stressed the importance of AI capacity-building for developing countries to bridge the AI digital divide and "prevent creating new historical injustice in AI" 4

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Geopolitical Implications and U.S.-China Competition Over AI Standards

The formation of WAICO arrives amid intensifying U.S.-China competition over the future of global AI ecosystems 3

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. At a UN AI dialogue the previous week, Washington and Beijing presented competing visions: the U.S. argued that heavy regulation would stifle breakthroughs, while China framed its low-cost, open-source models as a public good that could narrow global AI inequality 1

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. Beijing is positioning itself as a champion of sovereign AI, promoting technological sovereignty particularly among Southeast Asian and developing countries that fear being left behind in the AI race 3

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Analysts describe WAICO as an intergovernmental body for AI designed for developing countries outside Western frameworks, including the EU's AI Act and the G7 process 1

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. "China has been making inroads with Southeast Asian countries in terms of AI capacity-building," an Asian diplomat told Reuters, noting that China "portrays itself as speaking up for developing countries who are being left behind in the AI race" 1

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. The notable absence of major U.S. technology firms at the Shanghai conference highlights a widening rift in global AI governance approaches 3

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Technological Sovereignty and Agentic AI Systems on Display

The conference showcased China's drive for technological sovereignty through demonstrations of advanced systems designed to function independently of Western technology. Huawei unveiled its Atlas 950 SuperPoD, a massive AI computing cluster built to operate without high-end U.S. semiconductors from firms like Nvidia 3

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. The event featured over 1,000 products demonstrating AI's evolution from tool to "intelligent partner," including agentic AI systems, humanoid robots, AI-powered payment glasses, and the world's first agentic AI phone 4

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For global financial institutions and the FinTech sector, the emergence of this Shanghai-based intergovernmental organization signals a future where digital standards and AI-driven tools may diverge significantly between Western-aligned markets and those adopting Beijing's governance model 3

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. The two governments are preparing for their first official AI talks under President Donald Trump, with WAICO representing China's most concrete move yet to establish an alternative framework for shaping global AI governance 1

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. As Xi Jinping has compared the AI revolution to the historical impact of the steam engine, explicitly linking future economic growth to AI integration across China's economy, the stakes for this governance contest continue to rise 3

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