Chinese President Xi Jinping used his keynote at the World AI Conference (WAIC) on Monday to propose a 29-country AI governance body. The proposed framework explicitly leaves out blockchain and crypto — a move that deepens the US-China tech divide. Xi declared China a champion of a new global AI order, positioning Beijing as the architect of rules for a technology it wants to lead.
What the proposal includes
The body would bring together 29 nations to set standards and oversight for artificial intelligence. Xi didn't name the countries, but the list is expected to include China's close allies and partners in the Global South. The group would focus on safety, ethics, and interoperability — but not the decentralized ledger technologies that underpin crypto.
Why crypto is left out
The exclusion isn't a surprise. Beijing has banned crypto trading and mining since 2021, and its state-backed digital yuan is the only blockchain project it promotes. By keeping blockchain and crypto out of the AI governance body, Xi signals that China sees the two as separate — and that decentralized systems don't fit its vision of state-controlled tech standards. The move also avoids giving legitimacy to a sector Beijing views as risky.
Deepening the divide
The US and its allies have been pushing their own AI governance frameworks, often with industry input that includes blockchain firms. China's proposal offers an alternative that excludes those players entirely. That widens the rift between the two tech blocs. For crypto companies, it means they're locked out of the conversation in the world's second-largest economy — and potentially in the 29 countries that sign on.
Xi's vision
Xi framed the proposal as a way to prevent a fragmented global AI landscape. He called for shared rules to avoid a 'race to the bottom' in AI safety. But the subtext is clear: China wants to set the terms. By declaring itself the champion of a new global AI order, Beijing is challenging the US-led model that has dominated tech governance for decades.
The proposal now faces scrutiny from other nations, particularly the US, which has not yet responded. The WAIC continues through the week, and more details on the 29-country list are expected before the conference ends.
