29 June 2026

AI as Statecraft: How Asia Is Rewriting the Rules of Technology Power

E-International Relations  |  Mark Esposito and Bruno S. Sergi

Asian economies are actively rewriting the rules of technology power by adopting distinct state-led strategies for artificial intelligence, contrasting sharply with the European Union's liability-focused approach. While the EU views AI as a liability problem to manage, Asia frames it as a coordination problem requiring deliberate state intervention to accelerate demand and adoption.

This divergence has structural consequences, evident in 2024-2026 data. China's "AI Plus" guideline mandates 90% penetration by 2030, achieving 515 million users and 58% enterprise adoption. South Korea's Framework Act on AI (Jan 2026) triples its AI budget to 10.1 trillion won and deploys 260,000 Blackwell GPUs, leading in AI patents per capita. India's IndiaAI Mission (March 2024) treats compute as a public good, deploying over 38,000 GPUs at cheapest subsidized rates, resulting in 57% enterprise adoption. Japan deploys over $99 billion in capital to catch up. Singapore, with 61% population adoption, employs "governance by measurement." The EU's enterprise AI adoption reached 20% by Dec 2025, but a widening 38-percentage-point gap between large (55%) and small (17%) enterprises is exacerbated by high compliance costs under the AI Act.

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