Artificial intelligence is a key driving force behind a new wave of technological revolution and industrial transformation. General Secretary Xi Jinping emphasized the need to promote the “deep integration of artificial intelligence with economic and social development and to advance the healthy development of the new generation of AI in China.”1
Generative Artificial Intelligence (GenAI) is not just a technological breakthrough—it is a cornerstone of global power in the 21st century. Capable of creating human-like text, images, and other digital content, GenAI is transforming industries and redefining the geopolitical balance. A recent report from the World Intellectual Property Organization (WIPO) highlights China’s decisive lead in the GenAI patent race, with the country positioning itself as the world’s foremost innovator in this game-changing field.
[China] amassed an impressive 38,000 GenAI patents between 2014 and 2023, surpassing the combined efforts of all other countries.
Thediplomat.com
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China’s Patent Dominance
Between 2014 and 2023, over 54,000 patent families related to GenAI were filed globally, with a staggering eightfold growth in applications since 2017. Remarkably, Chinese entities—including industry leaders like Baidu, Tencent, and Alibaba, as well as state-sponsored institutions like the Chinese Academy of Sciences (CAS)—accounted for over 38,000 of these filings.
This dominance reflects a deliberate national strategy. China has prioritized AI development as part of its broader goal to become a global technology superpower. Backed by state funding, cutting-edge research, and a burgeoning ecosystem of tech startups, China has surged ahead of its competitors in securing intellectual property for GenAI innovations.
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As nations and corporations invest substantial resources to develop AI technologies, the impact extends beyond economics. This technology is poised to influence various aspects of our lives, including military capabilities and national security, global trade, and international relations.
A Lagging United States
While the United States remains a key player, its position in the GenAI race pales in comparison. U.S.-based entities filed just over 6,000 patents during the same period—far fewer than their Chinese counterparts. Despite housing tech giants like Google, Microsoft, and OpenAI, the U.S. has been slower to translate research breakthroughs into patent dominance.
With around 6,300 patent families between 2014 and 2023, the US is the second most important research location for GenAI patenting. The Asian countries Republic of Korea, Japan and India are other key research locations for GenAI, all ranking in the top 5 countries worldwide (third, fourth and fifth respectively). The United Kingdom is the leading European location (sixth globally), with 714 patents published in the same period. However, Germany is close behind (708 patent families) and has published more GenAI patents than the UK in recent years. These top inventor locations account for the majority (94%) of global patenting activity related to GenAI.2
Meanwhile, Inventors based in China were responsible for more than 38,000 patent families between 2014 and 2023, based on the inventor addresses published on patents. Since 2017, China has published more patents in this field each year than all other countries combined (70.3% of World share).
This gap underscores a fundamental difference in strategy: China’s state-backed approach emphasizes patent accumulation as a tool of geopolitical influence, while the U.S. relies on market-driven innovation.
The Geopolitical Stakes
From a global technological competition perspective, the GenAI revolution, spearheaded by countries like China, the United States, and South Korea, is not merely a matter of innovation and economic growth. It’s a battle for geopolitical supremacy.
The implications of China’s lead in GenAI extend far beyond technological innovation. As GenAI becomes integral to industries such as defense, healthcare, and finance, it will also shape global power dynamics. Control over AI technologies is increasingly viewed as a determinant of military capabilities, economic resilience, and diplomatic leverage.
In this vien, China’s dominance in GenAI patents signals its ambition to control the infrastructure of the digital economy. By establishing itself as a leader in AI, China aims to set and influence global standards, secure trade advantages, and wield influence over the international tech ecosystem.
Challenges Ahead
While China and the U.S. dominate the GenAI landscape, other nations are carving out their roles. South Korea and Japan have focused on hardware and industry-specific AI applications, while Europe emphasizes ethical governance and regulatory frameworks. India is emerging as a hub for AI talent, contributing significantly to global research efforts.
By 2040, China will be in a dominant position in many areas of AI
Jones, H. (2022)3
Despite its rapid progress, the global race for GenAI supremacy presents challenges. The risk of fragmented AI ecosystems—with competing regulatory standards and ethical approaches—could hinder international collaboration. Moreover, the widespread adoption of GenAI threatens to disrupt labor markets, displacing both low- and high-skilled jobs.
For nations lagging in AI development, the consequences could be severe. Falling behind in GenAI innovation risks not only economic stagnation but also diminished geopolitical influence.
Generative AI represents more than a technological revolution—it is a new frontier in global competition. As China solidifies its lead in GenAI patents, the stakes in the AI arms race have never been higher. The coming years will determine whether the U.S. and other nations can close the gap—or if China will cement its position as the uncontested leader in the most transformative technology of our time.
