China's Role in Shaping the Physical AI Revolution and Its Global Implications
China is positioning itself as a leader in the physical AI revolution, embedding artificial intelligence into the physical environment such as traffic systems, hospital wards, and industrial operations. This shift from a software-centered vision of AI to a systemic integration into everyday infrastructure is seen as a response to demographic pressures and the need for efficient resource management. China's approach emphasizes AI as infrastructure, coordinating across domains to reduce friction and anticipate demand. This strategy is supported by China's manufacturing scale, state coordination, and infrastructure capacity, potentially allowing it to influence global standards in AI technology.