Analysts Warn China Against Creating Rival AI Bloc With New Waico Body

China has launched the World Artificial Intelligence Cooperation Organisation (Waico) to advance global AI cooperation, but analysts warn the move could inadvertently trigger a polarized split in international governance. The concern is that Waico may be perceived as a rival bloc to the US-led Pax Silica partnership, forcing nations into an "us or them" geopolitical choice.

While Beijing frames Waico as a vehicle for "AI for good and for all," the organization emerges alongside a tightening US-led coalition. The Pax Silica partnership, established in December 2025, currently comprises 24 members. This includes the European Commission, which signed the initiative in June on behalf of the 27 EU member states. According to the South China Morning Post, Pax Silica focuses heavily on securing supply chains and reducing "coercive dependencies" in the tech sector.

The Risk of Polarization

The current landscape is defined by a clash between national security imperatives and industrial policy. The US is actively building a tech bloc to limit Chinese influence and secure critical hardware, while China seeks to lead an inclusive organization that provides AI capacity to the Global South and establishes its own governance standards.

This tension is already visible in membership patterns. Currently, Kazakhstan is the only country that maintains membership in both Waico and Pax Silica. This rarity suggests a growing trend toward exclusivity that could fragment the global tech ecosystem. Sun Chenghao, a senior fellow at Tsinghua University’s Centre for International Security and Strategy, noted that Waico's influence depends on offering "open cooperation, capacity building and tangible opportunities for development," rather than engaging in bloc-based confrontation.

Industry and Geopolitical Implications

A formal split in AI governance would have severe consequences for the industry. Fragmented technical standards could hinder interoperability, while restricted access to computing power and specialized talent would slow the pace of innovation. Furthermore, "middle countries" may face increasing pressure to align with either Washington or Beijing, potentially stalling global efforts to establish unified AI safety protocols.

To mitigate these risks, experts suggest that China must lower the barrier for entry into Waico. Huang Ping, assistant dean of the school of public policy at the Chinese University of Hong Kong (Shenzhen), argued that the requirements for joining should be low enough that member countries "do not need to explain to the US" their decision to participate.

Future Outlook

Observers will now watch whether China implements exclusionary clauses or maintains a truly open-door policy for Waico. The primary question remains whether these two frameworks can coexist or if the drive for supply chain security will inevitably push the world toward two separate, incompatible AI ecosystems. For now, the ability of neutral nations to bridge both organizations remains the key indicator of whether global AI governance will remain integrated or diverge.