China's AI boom is just getting started and it's reshaping tech

Five charts to start your day

Power is shifting again in technology, in industry and in economics. The old centres of gravity that once seemed unshakeable are beginning to tilt.

China’s surge in open-source AI models shows how quickly dominance can change. For years the US and Europe defined the field. Now Chinese AI models are not only catching up but leading in global adoption. The world’s digital balance of power is moving east, powered by a mix of industrial policy, technical talent and the sheer speed of domestic innovation.

That pattern repeats elsewhere. Airbus has pulled decisively ahead of Boeing, capitalising on its rival’s long recovery from crisis. Britain’s highest earners, once near the top of global income rankings, are sliding down the ranks – a symbol of fading competitiveness that mirrors the country’s broader productivity malaise. Meanwhile, the global race to finance the clean energy transition remains badly uneven, with trillions still missing from the effort to prevent dangerous warming.

Even so, there are moments of hope. The UK still has space to repair its public finances before debt becomes unmanageable. But whether in AI, aviation or economics, the same question hangs over every chart: will Western economies adapt fast enough to stay relevant, or will the next age of progress belong to others?

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CHART 1 • China’s AI boom is just getting started and it’s reshaping tech

For years the US and Europe dominated the development and deployment of open-source AI models. But over the past 18 months, China has quietly caught up and now leads in global model adoption.

This chart shows that by late 2025, Chinese AI models will account for the largest share of global usage, overtaking both the US and EU. It is a rapid turnaround that reflects China’s push to build domestic alternatives to Western platforms and to open-source its own large language models for broader use.

This shift could reshape the global AI industry landscape. If China sets the pace in open-source development, the balance of AI innovation and influence may begin to tilt eastward.

Will Western AI ecosystems adapt fast enough to stay competitive, or is the momentum already shifting towards Beijing?

Source: Financial Times

The thread connecting these charts is one of momentum: who has it, who has lost it, and who still thinks they do. China’s rise in AI development feels like more than a technological milestone. It signals the arrival of a multipolar digital world, one that no longer revolves around Silicon Valley.

For Britain, the lesson cuts closer to home. Economic competitiveness fades quietly, then suddenly. The challenge is not just to respond, but to reinvent in skills, in capital allocation, and in the confidence to build rather than drift.

I’ve got four more charts that expand on this story, but they’re for paid subscribers. Consider joining if you want the full edition and a deeper look at how global economic power is being redrawn, from code to capital.

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