Western companies systematically misread the AI strategy of China, says former Alibaba executive Sharon Gai in Computer Weekly. “The practical takeaway is not that Western companies should replicate China’s model. The regulatory, cultural, and political contexts are too different for direct imitation. But there are strategic lessons worth absorbing,” she writes.
Sharon Gai:
The practical takeaway is not that Western companies should replicate China’s model. The regulatory, cultural, and political contexts are too different for direct imitation. But there are strategic lessons worth absorbing.
First, stop treating AI deployment as something that happens after the model is “ready.” The companies gaining the most ground, in China and increasingly elsewhere, are the ones deploying imperfect AI in controlled but real environments, learning from live data, and iterating rapidly. Waiting for perfection is a luxury that the pace of competition no longer affords.
Second, invest in the integration layer. The model is only as valuable as the ecosystem it connects to. Western organisations that focus exclusively on procuring the best model while neglecting the workflows, data pipelines, and cultural changes needed to make that model useful will find themselves outpaced by competitors who build tighter loops between AI and operations.
Third, develop genuine China literacy within your strategy teams. Too many Western companies rely on surface-level reporting or outdated assumptions about Chinese technology. The executives who will navigate the next decade of AI competition successfully are those who invest in understanding what is actually happening on the ground, not what fits the familiar narrative.
The AI race is not a single sprint with one finish line. It is a complex, multi-front contest where different strategies can win in different domains. Western companies that continue to misread China’s approach are not just underestimating a competitor. They are misunderstanding the game itself.
Sharon Gai is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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