Technology & Science

29 Nations Launch WAICO in Shanghai, Formalizing a Two-Bloc AI Governance World

On 16 July 2026, twenty-nine mainly Global South governments signed a treaty in Shanghai creating the World Artificial Intelligence Cooperation Organization (WAICO), an institutional alternative to the EU/G7 AI rule-sets and the U.S.-led “Pax Silica” bloc.

By Underlines Team

Focusing Facts

  1. Signing ceremony gathered representatives of 29 countries—including China, Russia, Indonesia, Brazil and Pakistan—at the Shanghai World Expo Centre on 16 July 2026; UN Secretary-General António Guterres observed but did not sign.
  2. No G7 member state joined; Kazakhstan is the only country appearing on both WAICO’s roster and the 35-nation Pax Silica supply-chain pact.
  3. Xi Jinping coupled the launch with a pledge of 5,000 AI training slots for developing nations over five years and promised regional AI cooperation centres with ASEAN, the African Union, BRICS and others.

Context

Institutional schisms over technology are not new—compare the 1949 founding of COMECON as a socialist counterweight to the Bretton Woods system or the 1980s battle between GSM and CDMA mobile standards—but WAICO’s birth marks the first hard split in AI governance. It crystallises several long-running forces: (1) the shift of normative power from universalist UN forums to rival, value-aligned blocs; (2) the maturation of China’s domestic AI stack to a scale that lets Beijing export capacity as well as ideology; and (3) growing Global South resistance to rules written by capital-rich countries. If WAICO gains traction—through capacity-building carrots such as Huawei hardware and Beijing-funded training—it could lock almost a third of the world’s population into technical standards and compliance pathways incompatible with the EU AI Act for decades, much as the Soviet metric railway gauge still shapes Eurasian logistics a century later. Whether the organisation flourishes or fizzles, the mere fact that nations now have a choice of governance tracks ends the post-2016 assumption of eventual regulatory convergence and signals a future in which AI, like nuclear technology or internet protocols, is governed by competing regimes rather than a single global compact.

Perspectives

Chinese state-owned media

e.g., China.org.cn — Portrays WAICO as the long-awaited, inclusive framework that will share AI’s benefits with the Global South and correct Western technology monopolies. State-run outlet presents China’s leadership as purely benevolent, omits any mention of National Intelligence Law obligations or the possibility that WAICO could entrench Beijing’s geopolitical influence.

Western tech and policy media

e.g., Tech Times, The Diplomat — Frames WAICO as a rival bloc that hardens a two-track AI governance world, warning enterprises of costly compliance splits and highlighting concerns over authoritarian rule-making. Focuses on risks, incompatibilities and security threats that affect Western interests, potentially overstating conflict dynamics while giving limited attention to capacity-building promises attractive to developing nations.

Global South media outlets

e.g., KBC – Kenya — Welcomes China’s initiative as a chance for developing countries to gain training, infrastructure and a stronger voice in setting AI rules otherwise dominated by rich nations. Echoes China’s inclusivity narrative and downplays questions about data sovereignty, surveillance or future dependency that might accompany Chinese support.

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