Jemy Finance Market Research Team At Jemy Trade Presents:
Article Date: August 28, 2025
The race for global dominance is no longer limited to naval fleets, conventional military forces, or even trade balances. The new battlefield is “data,” and its most powerful weapon is “Artificial Intelligence” (AI). In our current era, AI has transformed from a promising technology into a crucial geoeconomic tool that determines who will control the global economy, influence national security, and reshape the balance of power. The fierce competition between the United States and China, with the rise of powers like Russia and India, is drawing a new world map where economic and strategic interests are intertwined as never before.
The American Strategy: Hegemony Through Innovation
The United States has long been a leader in technological innovation, building its dominance on this foundation. In the AI race, Washington is pursuing a multifaceted strategy. The American approach relies on its superiority in research and development, massive funding from venture capital, and the presence of tech giants like Google, Amazon, and Microsoft, which are investing billions in the field. These companies are not only leading fundamental research but also deploying AI applications in every sector of the economy, from healthcare to finance and logistics.
However, the U.S. faces significant challenges. First, the fierce competition from China. Second, the need to attract and retain the best minds from around the world, especially in the face of immigration restrictions. The third and most critical challenge lies in maintaining its leadership in “military AI” and its applications in defense systems, which requires complex coordination between the public and private sectors.
The Rise of China: The Digital Nation-State
China is taking a completely different path, driven by its “Made in China 2025” strategy and its national AI development plan. Beijing is adopting a comprehensive, state-led approach aimed at achieving technological self-sufficiency and exporting its technology globally. China benefits from its massive population to collect vast amounts of data, the new “black gold” of the AI era. It also has a competitive advantage in its ability to integrate civilian and military technology, giving it a tremendous speed in development.
China aims to become the global leader in AI by 2030 and is investing heavily in infrastructure, from 5G networks to cloud computing. However, Beijing faces obstacles, most notably the U.S. restrictions on exporting advanced semiconductors, which are essential for running sophisticated AI systems. These restrictions are forcing China to accelerate its efforts to develop domestic chip technology, which may affect the pace of its progress.
Russia and India: New Competitors in the Arena
While the American-Chinese rivalry dominates the headlines, other powers are seeking to assert their presence. Russia, which primarily focuses on the military and security aspects, is investing in AI to develop autonomous weapon systems, cybersecurity defenses, and surveillance tools. Although its economic capabilities do not match the two superpowers, its expertise in cybersecurity and software gives it a relative advantage.
India, meanwhile, is emerging as a rising power thanks to its massive technological base, a huge number of software engineers, and a growing domestic market. India is adopting an “AI for All” strategy, focusing on applications that serve social development, such as healthcare and education. Although India does not seek military dominance in this field, it aims to become a global hub for AI application development, leveraging its close ties with the United States and American tech giants.
Global Economy and the Future of Jobs
The impact of this race extends beyond politics and military affairs. On the economic front, AI is leading to a fundamental transformation of the job market. On one hand, it creates new jobs in fields like data science and AI engineering. On the other hand, it threatens to replace routine and repetitive jobs in sectors such as manufacturing and financial services.
