Stocks to tap into China's quest for global AI dominance

China's tech heavyweights are spearheading the national AI revolution with staunch government backing.

Vikram Barhat 9 May, 2018 | 5:00PM
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As reported in the New York Times, a key element of the ongoing trade spat between a belligerent U.S. and a defiant China is the Trump administration's demand that the Chinese government put the skids on its US$300-billion push into advanced technology, including artificial intelligence (AI). The Asian economic powerhouse has launched a bold bid to surpass America to become the global leader in AI by 2030.

While the U.S. currently leads the race, China is fast closing the gap. Beijing's audacious vision for AI dominance, is backed by massive infrastructure spending, which includes building a US$5-billion AI fund and the creation of a US$2.1 billion technology park to spur AI innovation. Money has started flooding into China's thriving start-up industry. The country's AI-focused businesses have attracted a whopping US$4.5 billion between 2012 and 2017, according to a whitepaper produced by Chinese venture capital firm Sinovation Venture.

China's tech heavyweights Baidu, Alibaba and Tencent are spearheading the national AI revolution with staunch government backing. Factors like large amounts of raw data (used to train AI systems), lax regulation, favourable government policies and a population eager to adopt new technologies coalesce to make China a serious contender for the top spot.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR178.33 USD0.65Rating
Baidu Inc ADR181.76 USD0.44Rating
Tencent Holdings Ltd ADR65.00 USD-0.46Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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