The technology rivalry between the US and China has arrived in Bangladesh, placing Dhaka at a crossroads as two competing visions for the future of artificial intelligence take shape.
On August 1, Bangladesh announced its decision to join the China-led World Artificial Intelligence Cooperation Organisation (WAICO) as an observer.
The same day, visiting US Special Envoy for South and Central Asia Sergio Gor told Prime Minister Tarique Rahman that Bangladesh could eventually become a partner in the US-led economic-security coalition, PAX Silica Initiative.
Launched in December 2025, PAX Silica aims to secure supply chains for artificial intelligence, semiconductors, and critical minerals, reduce coercive dependencies, protect technologies critical to AI, and ensure trusted partners can develop and deploy emerging technologies.
Its members include the European Union, Germany, Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates and Australia.
WAICO, headquartered in Shanghai and established on July 16, seeks to deepen international AI cooperation, bridge the global digital divide and develop common regulations for safe and inclusive AI.
Its 29 founding members include China, Russia, Brazil, Indonesia, Malaysia, Pakistan, and South Africa. UN Secretary-General António Guterres attended its launch.
Analysts say the parallel developments present Bangladesh with opportunities as well as strategic dilemmas, particularly because the country remains a consumer rather than a producer of advanced AI technologies.
Acknowledging the changing landscape after meeting Gor, Foreign Minister Khalilur Rahman said AI would underpin the future global order.
“Two rival systems are taking shape, and the world is splintering into two blocs,” he said.
BALANCING OPPORTUNITY, DEPENDENCE
Asif Bin Ali, a geopolitical analyst and doctoral fellow at Georgia State University, said Bangladesh should avoid viewing the issue as a binary choice between Washington and Beijing.
Chinese firms now offer increasingly affordable AI models and technologies linked to the country’s rapidly expanding robotics and manufacturing sectors. China accounted for more than half of global industrial robot installations in 2024, while its AI models have rapidly narrowed the performance gap with American competitors.
However, Bangladesh should look beyond cost, he argued.
“The initial price of an AI service is only one part of the calculation. Bangladesh must also consider cybersecurity, data protection, dependence on foreign cloud infrastructure and the long-term cost of becoming locked into a particular provider.”
Greater use of Chinese technology could expand access to affordable AI and digital infrastructure, but excessive reliance on any one ecosystem could expose Bangladesh to risks involving data security, technical standards, and foreign political influence, according to Asif.
“AI sovereignty means retaining the capacity to protect national data, regulate foreign providers, maintain interoperability, and change vendors when national interest requires it,” he said.
Asif said the recently signed US-Bangladesh Agreement on Reciprocal Trade (ART) adds another strategic dimension.
While simply using Chinese AI products would not violate the agreement, large government-to-government digital arrangements that Washington considers harmful to US interests could trigger diplomatic friction and potentially affect bilateral trade, he said.
He also noted that Bangladesh is already deeply integrated with American technology companies such as Google, Meta, Microsoft, and OpenAI.
“Bangladesh is therefore not making a choice from a position of technological neutrality.”
Instead of aligning with either bloc, Bangladesh should establish clear national standards on data security, public procurement and AI governance through parliamentary scrutiny and expert consultation, he added.
DIFFERENT OBJECTIVES
Prof Shahab Enam Khan of the international relations department at Jahangirnagar University said WAICO and PAX Silica serve fundamentally different purposes.
He described WAICO as a Global South initiative aimed at shaping AI governance instead of leaving rule-making solely to Western countries.
“The West has traditionally dominated global technological norms. China is now trying to create an alternative framework,” he said.
Given Bangladesh’s limited AI production capacity, joining WAICO as an observer is a logical step, he argued.
PAX Silica, by contrast, focuses on securing semiconductor and AI supply chains.
“Bangladesh neither produces chips nor has the capacity to comply fully with the Western regulatory ecosystem at this stage,” Prof Shahab said.
At the same time, Bangladesh relies heavily on Chinese technologies across telecommunications, manufacturing, and digital infrastructure, he said.
“Geopolitically, PAX Silica is important. Economically, Bangladesh remains closely linked with China. That creates a dilemma.”
Rather than choosing sides, Bangladesh should remain an observer in WAICO while carefully negotiating any future participation in PAX Silica, focusing on technology transfer, skills development and employment opportunities, according to him.
“If Bangladesh develops a skilled AI workforce, it can become part of the global value chain because both the US and China face shortages of qualified manpower,” he said.
MAINTAINING STRATEGIC BALANCE
Prof Bulbul Siddiqi, director of the Confucius Institute at North South University, said joining WAICO could strengthen Bangladesh’s cooperation with China in AI research and education while reinforcing bilateral trust.
However, he cautioned against excessive dependence on any single technological ecosystem.
“Bangladesh should not accept any conditions that could harm its relations with other countries.”
Instead, Bangladesh should continue pursuing the balanced foreign policy that has long guided its relations with major powers, he said.
Source: https://www.thedailystar.net/news/bangladesh/news/bangladesh-walks-ai-tightrope-us-china-build-rival-tech-blocs-4238821
