Middle powers are choosing to navigate the artificial intelligence rivalry between the United States and China by favoring flexible partnerships rather than joining closed alliances, according to an AI governance panel. Alejandro Reyes, an adjunct professor at the University of Hong Kong and senior fellow at the Centre on Contemporary China and the World (CCCW), stated that these nations are exercising agency by selectively partnering with both Beijing and Washington "issue by issue."
Reyes told a forum in Shenzhen, co-hosted by the Shenzhen Loop Area Institute and the CCCW, that countries in the middle do not want to be "locked in" but rather want to "plug in." He explained that the technology stacks these countries trust will be those that combine easily with others, allowing them to remain free to work with various partners.
The US and China are competing for influence in AI infrastructure investment in regions such as Southeast Asia and the Middle East. In Malaysia’s Johor state, American enterprises including Microsoft, Google and Oracle are establishing data centres and cloud services alongside similar facilities built by Chinese tech giants ByteDance, Tencent Holdings and Alibaba Group Holding. Similarly, the United Arab Emirates is another high-profile example, with Washington supplying advanced chips and models and China providing affordable cloud services and digital connectivity.
Reyes, who previously advised the Canadian foreign ministry, argued that middle economies should pursue "network sovereignty." This involves maintaining domestic control over critical aspects closest to citizens—such as data, energy, and public-service AI—while diversifying upstream suppliers to prevent any single country from wielding monopolistic leverage. He noted that while few countries can control every layer of the technology stack, they can have "freedom within interdependence."
The two superpowers are vying for AI supremacy. Washington relies on venture capital and tech giants, while Beijing favours cost-effective models and prioritises practical deployment through state planning. Governance frameworks are similarly diverging: Beijing has launched the China-based World Artificial Intelligence Cooperation Organisation, championing beneficial, safe and fair AI development, while Washington’s 24-nation Pax Silica initiative expands AI norms to semiconductor supply chain security and aims to foster innovation.
