During his inaugural keynote at the World Artificial Intelligence Conference (WAIC) 2026, Chinese President Xi Jinping outlined a strong commitment to artificial intelligence while notably omitting any mention of cryptocurrencies. This conference is taking place in Shanghai from July 17 to 20, and it has been a platform for discussing China's ambitions in AI since its inception in 2018.

Focus on International AI Governance

The overarching theme of the 2026 WAIC, titled 'Intelligent Partners, Co-create the Future,' reflects China's desire to position itself as a leader in AI governance. Just one day before Xi's speech, representatives from 29 nations formalized a commitment to collaborate on AI governance standards, creating a coalition aimed at establishing a global framework for AI operations.

China’s initiative seeks to present AI as an 'international public good,' with the country aiming to define the rules for AI development and implementation worldwide. This shift shows China's strategic intent to be the primary authority in the field, rather than just a participant adhering to the standards set by others.

The Absence of Cryptocurrency Discussion

Throughout the conference, the absence of references to cryptocurrencies, blockchain technology, or digital assets was striking. Since the comprehensive bans on cryptocurrency activities in 2021, including trading and mining, China's stance has been increasingly adversarial. This is notable for a country that once accounted for about 65% of global Bitcoin mining.

The implications of this clear division between AI and cryptocurrency are significant for investors. The establishment of an international AI cooperation body enhances regulatory clarity within that sector, while cryptocurrencies remain in a murky regulatory environment across the same jurisdictions.

Global Capital Flow Dynamics

As the US tightens its regulations on AI chip exports to China, it simultaneously approaches a more structured regulatory framework for cryptocurrencies. This divergence in approach highlights a potential imbalance: while the US is setting the stage for both AI and crypto to coexist, China is firmly backing one technology and effectively sidelining another.

With these developments, the space for global capital flows may be reshaped, pushing investors to recalibrate their strategies in response to the evolving regulatory environments in both countries.

This material is informational and not a financial recommendation.