China’s AI crossroads: 3 divergent paths in the race for dominance

South China Morning Post
by Iris Deng
February 21, 2026
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China’s AI crossroads: 3 divergent paths in the race for dominance
China’s tech giant Tencent is at a critical juncture as it navigates the complexities of artificial intelligence (AI) development. During his annual New Year address, CEO Pony Ma Huateng emphasized the importance of ethical responsibility and innovation in shaping China’s AI future. His remarks, delivered to over 115,000 employees at a high-profile event near Tencent’s headquarters in Shenzhen, highlighted the company’s strategic direction in the global AI race. The event, held at the Shenzhen Bay Sports Centre, combined entertainment with introspection. While attendees gathered for celebrity appearances and prizes, Ma’s speech underscored the need for cautious progress in AI to avoid negative societal impacts. His comments reflect Tencent’s broader efforts to balance innovation with ethical considerations, a stance that aligns with growing global concerns about AI governance. As China vies for leadership in AI alongside global powers like the US, the implications of its approach extend far beyond national borders. The country’s emphasis on collaboration between government and private sectors, coupled with significant investment in AI research, positions it as a key player in shaping the future of technology. However, challenges such as regulatory frameworks and international competition remain critical hurdles. The significance of this moment lies in its potential to influence not only China’s tech trajectory but also global AI developments. As industries worldwide grapple with ethical dilemmas and rapid technological advancements, Tencent’s strategic choices will have far-reaching consequences for innovation, economic growth, and societal impact.
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Originally published on South China Morning Post on 2/21/2026