China's state-backed AI push boosts tech stocks like Alibaba amid global competition.

China’s AI ambitions, backed by state-driven infrastructure and strategic investments, are fueling a surge in tech stocks like Alibaba, which has seen strong gains amid rising investor confidence. While the U.S. leads in broad AI adoption, China is focusing on long-term industrial applications and energy-efficient compute systems, potentially enabling sustained growth. Alibaba’s Qwen3-Max model and partnerships with firms like Nvidia have boosted its market position, with record capital inflows and a favorable valuation. China’s regulatory framework balances innovation with security, promoting AI development across sectors while addressing risks like bias and privacy. As global AI governance evolves, China is emerging as a key player, offering an alternative model that emphasizes state-led development and international cooperation.