China is rapidly closing the gap with the United States in the global artificial intelligence (AI) race, with Chinese AI models gaining popularity worldwide and challenging American dominance. This development was highlighted during the ongoing World Artificial Intelligence Conference in Shanghai, where the city unveiled a new action plan to establish itself as a leading zone for high-level autonomous driving. China's AI strategy follows closely behind the U.S. administration's recent low-regulation approach to AI development. Despite progress in hardware, China still faces challenges in chip manufacturing and software ecosystems. Experts note that open-source AI models, widely used for market penetration, could become a strategic advantage for China if integrated with domestic technology firms like Huawei, potentially undermining U.S. influence in GPU supply for AI. The conference also showcased China's ambitions in robotics and humanoid technologies, leveraging its strengths in manufacturing, supply chains, and rapid innovation cycles. Meanwhile, global calls for AI cooperation have emerged amid intensifying competition between the two countries.