Guardian Column Argues China Has Built an AI Revolution

Guardian columnist Larry Elliott argues that China’s industrial rise has entered a third phase centered on artificial intelligence. The column contrasts repeated western predictions of Chinese economic decline with the country’s progression from low-cost manufacturing into batteries, electric vehicles, machine tools and now advanced AI. Elliott highlights Chinese startup Moonshot and its Kimi K3 model as an example of lower-cost competition with US systems, and cites a strategy of staying near the technological frontier while spreading Chinese models globally. He argues that free or inexpensive Chinese models could challenge assumptions behind heavy US AI investment and alter global competition. The piece also presents China’s long-running industrial policy as a lesson for Britain, while acknowledging structural problems including overinvestment, excess capacity and weak domestic consumption.

The Guardian AI, Larry Elliott – China’s demise was gleefully predicted by the west – meanwhile, it built an AI revolution | Larry Elliott – 3rd September 2026