While the world’s attention has been fixated on Western advancements in artificial intelligence and cryptocurrency, China has been quietly making monumental strides in both fields. On a recent episode of the CoinRock Show, host Matthias and AI expert William Laurent discussed how the West is severely underestimating China’s technological rise, particularly in AI and blockchain applications.
The conversation revealed that while Western nations debate regulations and ethics, China is already executing and leading in AI innovation, data collection, and financial technologies.
China’s AI Is Dominating The World
For years, the narrative around China’s technological growth has been centered on copying Western innovations, but this is no longer the case. China has shifted from replication to leading in AI research, development, and deployment. William Laurent, who has worked extensively in Asia, made a strong case for why China’s AI sector is far more advanced than the West gives it credit for.
“China isn’t just copying technology anymore—they’re leading in innovation. From AI to electric vehicles, they’re executing at a level that the West should be scared of,” William stated.
A Stanford AI Index Report (2024) confirmed that China now produces more high-impact AI research papers than the U.S., outpacing it in patent filings, funding, and real-world applications. Tech giants like Baidu, Tencent, and Alibaba are spearheading AI projects in healthcare, manufacturing, defense, and surveillance, giving China an edge in real-world AI implementation.
Unlike the West, where AI regulations slow down adoption, China’s state-backed AI programs allow it to integrate cutting-edge machine learning models into everyday infrastructure—an advantage that will only grow over time.
China Is Taking Over The Crypto Race
While cryptocurrency remains largely restricted in China, the country has still managed to maintain dominance in blockchain development and crypto-related technologies. Despite banning Bitcoin trading and mining, China continues to control much of the global blockchain infrastructure.
According to Cambridge Centre for Alternative Finance (2023), China still accounted for over 21% of Bitcoin’s global hash rate even after the mining ban, with many operations relocating to neighboring countries while maintaining Chinese investment and infrastructure support. Additionally, China leads in blockchain patents, with over 84,000 blockchain-related patents filed as of 2023, far surpassing the U.S. and Europe.
Moreover, the Digital Yuan (e-CNY) has already been tested in over 25 cities, processing $250 billion in transactions, demonstrating China’s growing control over digital financial systems. These advancements show that while China may have restricted direct crypto trading, its strategic approach to blockchain and digital currencies ensures its continued dominance in the space.
“People think China is out of crypto because of its bans, but in reality, they are playing the long game. Their control over blockchain technology, digital currencies, and mining infrastructure is unmatched,” Matthias pointed out.
China’s Digital Yuan (e-CNY) is already one of the world’s most advanced central bank digital currencies (CBDCs), with pilot programs running across major cities. The digital currency is designed to compete with traditional cryptocurrencies by offering government-backed stability while maintaining full state control over financial transactions.
Additionally, China still holds significant influence over Bitcoin mining. Despite government crackdowns, many mining operations relocated to neighboring countries while still receiving Chinese investment and infrastructure support.
Western Tech Complacency: A Costly Mistake?
Matthias and William agreed that the West’s arrogance in underestimating China’s AI and blockchain advancements could lead to a major power shift in global technology. While the U.S. and Europe remain preoccupied with AI safety debates and regulatory challenges, China is actively deploying AI in finance, surveillance, military, and industrial sectors.
“The West keeps underestimating China, but they are moving faster than anyone realizes. Their AI development, crypto infrastructure, and digital economy are all years ahead in execution,” William added.
With AI models such as DeepSeek and Wu Dao rivaling OpenAI’s ChatGPT, China’s advancements are no longer just competing—they are leading. The future of AI-driven economies could very well be shaped not in Silicon Valley, but in Beijing and Shenzhen.
According to the 2024 Stanford AI Index Report, China now publishes 27.2% of the world’s top AI research papers, surpassing the U.S. Additionally, a Harvard Kennedy School Belfer Center report highlighted that China has invested over $30 billion in AI research in the past year alone, outpacing most Western countries in funding.
Moreover, Baidu’s Ernie Bot 4.0, one of China’s most advanced AI models, has already demonstrated comparable reasoning abilities to GPT-4 in specific benchmarks, while Huawei’s PanGu model is being actively used in government, finance, and military applications. These advancements signal that China is no longer following but actively leading the AI revolution on a global scale.
Is the West Already Falling Behind?
As AI continues to evolve at an exponential rate, China is positioning itself as a global leader in both AI and blockchain, leaving the West scrambling to keep up. While American companies like OpenAI, Google, and Microsoft dominate the headlines, Chinese firms are quietly building the next generation of AI and financial technologies with far less scrutiny.
The question is not whether China will overtake the West in AI and crypto—the real concern is how soon it will happen and whether the West will even be prepared.
