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Cost is China's edge in Asia's AI adoption race

7/30/2026

Model pricing is the mechanism shaping which AI ecosystem wins Asia. is working to promote American AI across the continent, but China has established a dominant position in cheaper models.

Asia, the world's largest continent, is now the central arena of the AI race between the two countries.

The cost constraint in the stack China's grip on cheaper AI models gives it an immediate advantage where price is the deciding variable. competes on capability and, in some markets, on political alignment.

China's cheaper models are the baseline that any American AI pitch has to undercut.

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