Energy transition powers China's AI challenge to United States

Doha [Qatar], March 4: China's rapid push into artificial intelligence and its simultaneous energy transition are central to overtaking the United States in technological supremacy, according to a former finance vice-minister.
Competition in the field of AI has shifted from purely a technological sprint to a broader contest over application scenarios and regulatory frameworks, led by the world's two largest economies, Zhu Guangyao explained.
"China's leading position in energy transition has laid a solid foundation for AI development, thereby creating vast application scenarios," Zhu told the National Business Daily in a report published on Sunday. "For the US, the challenge posed by new circumstances lies in [the principle] that 'electricity is computing power'," he added.
Zhu also noted that, while the US currently leads in computing power, American industry leaders have publicly admitted that the gap with China was closing.
His remarks came ahead of China's "two sessions" meetings, which are due to take place in Beijing this week. The annual meetings of the top legislature, the National People's Congress, and the top political advisory body, the Chinese People's Political Consultative Conference, will set the country's economic agenda. Technological innovation and energy security are expected to be among Beijing's top priorities.
As AI development triggers an explosion in global electricity demand, China's abundant energy supply is increasingly viewed as a strategicadvantage.
China's electricity consumption grew by 5 per cent last year, hitting a record 10.4 trillion kilowatt-hours and making it the first nation to surpass the 10-trillion mark.
The figure more than doubled the 4.2 trillion kWh power demand in the US last year - itself a record high for the country - according to data from the US Energy Information Administration.Beijing has aggressively ramped up investments in green energy and transmission infrastructure in recent years, having made energy security a nationalpriority.
By the end of last year, wind and solar accounted for 47.3 per cent of China's total power-generation capacity, according to the National EnergyAdministration.
Kyle Chan, a fellow with the John L. Thornton China Centre at the Brookings Institution think tank, noted in a January report that this energy disparity - dubbed an "electron gap" - "could potentially reshape the balance of compute for AI between the two countries".
Chan, however, also suggested that China's clean-energy dominance could offer a solution to Washington's energy woes.
"With proper safeguards and limitations, Chinese investment in American clean technology manufacturing could help alleviate energy bottlenecks in the United States' AI data centre buildout," he said.
Former finance vice-minister Zhu noted that, while US-China competition in hi-tech sectors is set to intensify this year, the potential for cooperation between the two countries remains immense.
"Maintaining high-quality economic development is crucial for China amid fierce international competition," Zhu said, adding that China's potential for real economic growth was around 5 per cent annually for the next five years.
The South China Morning Post reported in January that Beijing was likely to set this year's gross domestic product growth target for 2026 at between 4.5 percent and 5 percent, according to sources briefed on the matter.
Source: Qatar Tribune