Global Artificial Intelligence Divergence Between the US and China Leaves Countries Facing Tough Choices
The US-led Pax Silica coalition and geopolitical competition are pushing allies toward a deepening artificial intelligence divide between Washington and Beijing.
The Pax Silica coalition, spearheaded by the United States, and escalating geopolitical competition are forcing countries to navigate a widening artificial intelligence chasm between Washington and Beijing, creating complex dilemmas for allies such as Singapore and Europe.
Establishment and Restrictions of the Pax Silica Coalition
In December 2025, seven countries joined the US-led Pax Silica coalition, which aims to secure supply chains supporting artificial intelligence technologies. The core purpose of this initiative was to protect critical minerals, semiconductors, and artificial intelligence infrastructure.
However, by August, the US State Department notified Pax Silica members and other nations endorsing the Artificial Intelligence Opportunity Declaration that they could not support redundant initiatives seen as a move against China.
Economic Challenges Faced by Countries Like Singapore
For some countries, such as Singapore—an early signatory—this policy shift poses a potential problem, as restrictions on Chinese artificial intelligence models could harm their economies.
Chinese open-weight systems such as DeepSeek, Qwen, and Kimi are downloaded and run globally, making them extremely difficult to audit or recall.
China's Role in Global Governance and the Growth of WAICO
On the other hand, China is seeking to gain ground in global governance through the World Artificial Intelligence Cooperation Organization (WAICO), which has increased its membership from 29 to 38.
This is increasingly narrowing the diplomatic and technological maneuvering room for countries and blocs attempting to strike a balance between the two global superpowers.
Europe's Dilemma and Strategic Moves
For Europe, much is at stake in this process. To avoid having to choose between the US and China, the European Commission proposed the Cloud and AI Development Act in June 2026.
However, the European Union also signed the Pax Silica declaration, positioning itself explicitly on the same side as the United States.