China is positioning itself as a global leader in artificial intelligence governance by proposing the creation of the World Artificial Intelligence Cooperation Organization (WAICO), a multilateral body aimed at fostering international coordination on AI rules. The initiative, first introduced by President Xi Jinping at the 2025 Asia-Pacific Economic Cooperation meeting, reflects Beijing’s broader strategy to shape global norms around AI while advancing its own technological and geopolitical interests. China’s approach to AI differs significantly from that of the United States and Europe. While Western nations have focused on regulating AI risks such as bias, transparency, and potential threats from artificial general intelligence, China emphasizes practical applications that drive economic growth. This is embodied in its “AI+” policy, which integrates AI into industries like manufacturing, healthcare, and transportation. Chinese firms often release models with open weights—allowing public access and adaptation—encouraging rapid innovation and adoption. Regulation in China is comprehensive but often applied with flexibility. Since 2022, the country has implemented strict rules on data privacy, content safety, and model deployment, requiring developers to submit their AI systems for pre-launch review by authorities. As a result, models like DeepSeek’s R1 are among the most regulated globally. However, enforcement tends to be soft, with regulators prioritizing innovation and stability over strict compliance. In contrast, the U.S. lacks federal AI legislation, with the Trump administration rolling back previous safety-focused executive orders and promoting a deregulatory stance. The European Union has taken a risk-based approach through its AI Act, which categorizes systems by risk level and imposes requirements accordingly. The UK has delayed its own comprehensive AI laws, pushing them to at least next year. On the international front, binding AI governance remains minimal. The Council of Europe’s Framework Convention on AI, adopted in May 2024, is the only legally binding treaty, but it lacks enforcement mechanisms. Other efforts are non-binding: UNESCO’s Ethics Recommendation, the OECD AI Principles, and the Bletchley Declaration signed by 28 countries at the 2023 UK AI Safety Summit. The UN is currently leading a global dialogue and has established a scientific panel to guide national policies. WAICO’s proposed structure would allow countries to collaborate on AI governance while respecting differing national approaches, with a focus on supporting the Global South. China has suggested Shanghai as the headquarters, signaling its intent to anchor the initiative. While WAICO is unlikely to enforce rules directly, it could serve as a platform for building consensus and harmonizing standards over time. Experts note that China’s push for WAICO has both commercial and diplomatic motivations. Setting global standards could boost the international adoption of Chinese AI products. At the same time, it positions China as a responsible global leader, offering an alternative to Western-dominated governance models and asserting influence in shaping the future of AI. Whether WAICO succeeds will depend on international trust, inclusivity, and the willingness of major powers to engage. While challenges remain, the initiative highlights a growing recognition that global cooperation—however imperfect—is essential to managing the risks and opportunities of AI.