China’s rapid advancements in artificial intelligence (AI) have significantly reshaped the global landscape, with profound implications for security, economic stability and democratic values. While AI holds immense potential for innovation and efficiency, under China’s authoritarian use of it, AI has become a tool for mass surveillance, censorship, disinformation, military expansion and economic coercion. This report analyses how China weaponises AI to consolidate power, influence global narratives, how Chinese AI companies must comply with the CCP’s orders, and how this undermines democratic institutions worldwide.
At the domestic level, China has developed the most sophisticated AI-powered surveillance state, utilising facial recognition, predictive policing, and biometric data-tracking to monitor its citizens and suppress dissent. The Great Firewall – an AI-driven censorship mechanism – controls the flow of information, shaping public perception and reinforcing the authority of the Chinese Communist Party (CCP). AI-enhanced disinformation campaigns manipulate domestic narratives and influence international media, pushing pro-Beijing messaging while suppressing dissenting views.
Beyond its borders, China’s AI strategy extends into military, economic and geopolitical domains. The People’s Liberation Army (PLA) is rapidly developing AI-powered autonomous warfare systems, cyberwarfare capabilities and intelligence analysis tools, making China a key player in modern conflict dynamics. Meanwhile, China has leveraged AI in the global economy for industrial automation, supply chain control and financial market manipulation, positioning itself as a dominant force in semiconductors, rare earth minerals and digital finance sectors. By integrating AI into the Belt and Road Initiative (BRI), Beijing has expanded its digital and economic influence across developing nations, embedding AI-driven infrastructure that ensures long-term dependence on Chinese technology.
A key case study within this report examines DeepSeek AI, a sophisticated Chinese AI system which is capable of manipulating narratives and influencing public opinion. DeepSeek AI is capable of controlling search engine results, generating AI-written propaganda and manipulating social media discussions, ensuring that, when Beijing so wishes, its messaging dominates the digital space. Beijing has been able to weaponise AI-driven disinformation, which has proven effective in altering public perception on issues such as Hong Kong.
China’s AI ambitions also directly impact global security, particularly in the Taiwan Strait and Russia–Ukraine conflict. The report details how China employs AI to undermine Taiwan’s democracy, using cyberwarfare, economic coercion, deepfake disinformation and AI-assisted military strategy to destabilise the island nation. Similarly, China has provided AI-driven intelligence sharing, cyberwarfare tools and economic assistance to Russia’s war effort against Ukraine, strengthening Moscow’s ability to evade sanctions and continue its aggression.
China’s infiltration into international organisations through AI-driven influence further cements its ability to shape global cybersecurity, trade and governance regulations. By pushing for AI- friendly authoritarian policies in institutions such as the United Nations (UN), International Telecommunication Union (ITU) and World Economic Forum (WEF), China seeks to normalise state-led AI governance, expanding its reach over the digital and economic future of the world.
Given the profound risks posed by China’s AI strategy, this report outlines a series of critical recommendations to safeguard democratic values, economic stability and international security. These recommendations emphasise the need for ethical AI frameworks, stronger cybersecurity measures, reduced reliance on Chinese AI technology, countering AI-driven disinformation, economic defences against AI-enabled market manipulation and bolstering AI in defence and national security. Additionally, the report underscores the importance of Western nations making clear their intent to defend Taiwan militarily, reinforcing deterrence against Chinese aggression.
China’s AI strategy represents one of the greatest threats to democracy, digital freedom and global stability in the modern era. The expansion of AI-driven authoritarianism, disinformation, surveillance, economic coercion and military advancements demands an urgent response from the international community. Failure to act could lead to a world where governments manipulate truth, replace privacy with surveillance and consolidate economic power through AI-driven coercion. A coordinated and proactive response is essential to ensuring AI remains a force for innovation, freedom and global security.
