• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
MagazineTech

Why China Has An Edge In the A.I. Arms Race

By
Clay Chandler
Clay Chandler
Executive Editor, Asia
Down Arrow Button Icon
By
Clay Chandler
Clay Chandler
Executive Editor, Asia
Down Arrow Button Icon
June 25, 2018, 8:00 AM ET

STEP ASIDE, SHERLOCK. Detectives in China say they can catch criminals using artificial intelligence—and if you don’t believe them, consider the case of the potato thief at the pop concert.

Officials in the eastern Chinese city of Jiaxing in May used A.I.-powered facial-recognition technology to nab the alleged tater taker from a crowd of more than 20,000 people attending a performance by Hong Kong crooner Jacky Cheung. Moments after passing through the concert’s security system, the unsuspecting suspect was busted: An algorithm matched his face with an image from a database of “most wanted” mug shots. Authorities seized the man on charges of stealing $17,000 worth of potatoes.

The thief was the third fugitive to be arrested at a Jacky Cheung concert in as many months using software developed by Beijing’s Megvii, among the many Chinese groups pioneering ways to combine A.I. and facial-recognition capabilities. Alibaba Group mobile payments affiliate Ant Financial uses a “smile to pay” feature to facilitate purchases at KFC. A high school in Hangzhou monitors students’ attentiveness in class. Traffic police in Shenzhen and other cities spot jaywalkers and reckless bike couriers. A park near Beijing’s Temple of Heaven uses the technology in a public restroom to stop patrons from stealing toilet paper.

All of this hints at the extraordinary zeal with which the world’s second-largest economy has embraced A.I. President Xi Jinping vows China will become the global leader in artificial intelligence by 2030, creating a domestic industry worth nearly $150 billion.

Should the rest of the world be alarmed by China’s A.I. dreams? Perhaps not. Implicit in most assessments of the country’s efforts, whether by U.S. officials or Chinese analysts, is the shared assumption that the programs will perform as advertised. Though Xi has certainly stepped up support for state-owned enterprises, tightened restrictions on foreign firms, and doled out massive subsidies to key sectors, his country’s future A.I. supremacy is far from guaranteed. “Many of the challenges of A.I. are global in nature,” reads a June report from McKinsey on the subject, and “not for government to solve alone.”

Kai-Fu Lee, the former head of Google China, argues that A.I. is shifting from a U.S.-led Age of Discovery to an Age of Implementation in which China enjoys significant “structural advantages.” The main drivers? Data, computing power, and competent engineers—all of which favor the world’s most populous nation.

Yet proponents of artificial intelligence warn that it could wipe out millions of jobs, a troubling prospect in a country that remains so heavily dependent on repetitive manufacturing jobs. How will China cope? Deep learning, it seems, can also raise deep questions.

A version of this article appears in the July 1, 2018 issue of Fortune with the headline “’Black Mirror,’ Slightly Broken.”

About the Author
By Clay ChandlerExecutive Editor, Asia

Clay Chandler is executive editor, Asia, at Fortune.

See full bioRight Arrow Button Icon

Latest from the Magazine

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest from the Magazine

Who’s really in control as AI and Big Tech race ahead?
MagazineEurope
Who’s really in control as AI and Big Tech race ahead?
By Francesca CassidyApril 10, 2026
21 days ago
Who owns ideas in the AI age?
MagazinePublishing
Who owns ideas in the AI age?
By Francesca CassidyApril 8, 2026
23 days ago
Southeast Asia’s business leaders want wellness at work—as long as the programs get real results
Magazine100 Best Companies to Work For
Southeast Asia’s business leaders want wellness at work—as long as the programs get real results
By Alice WilliamsApril 8, 2026
23 days ago
So… what are we doing with AI? Innovating in an age of caution
MagazineStrategy
So… what are we doing with AI? Innovating in an age of caution
By Francesca CassidyApril 7, 2026
24 days ago
Anthropic’s research shows that AI can already do a huge portion of many jobs; its top economist talks about how that could shape the future of work
MagazineAutomation
Anthropic’s research shows that AI can already do a huge portion of many jobs; its top economist talks about how that could shape the future of work
By Matthew Heimer and Nicolas RappApril 7, 2026
24 days ago
Fortune Archives: Who gets a seat at the table?
MagazineFortune Archives
Fortune Archives: Who gets a seat at the table?
By Indrani SenApril 5, 2026
26 days ago

Most Popular

China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
21 hours ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
4 days ago
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
Conferences
Accenture's Julie Sweet blew up 50 years of company history. She says the hardest part is still ahead
By Nick LichtenbergApril 29, 2026
2 days ago
America shot its arsenal empty in 2 wars. Now it needs Beijing's permission to reload
Commentary
America shot its arsenal empty in 2 wars. Now it needs Beijing's permission to reload
By Steve H. Hanke and Jeffrey WengApril 30, 2026
21 hours ago
Exclusive: America's largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth
Banking
Exclusive: America's largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth
By Nick LichtenbergApril 29, 2026
2 days ago
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
Big Tech
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
By Alexei OreskovicApril 29, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.