Rise of Generative AI: Is China still on the Track to Become AI Superpower

US – China strategic competition is zeitgeist of 21st century. In pursuance of Hundred Years Marathon, China aims to supplant USA as Global Superpower. However, USA’s conventional military superiority has obligated China to adopt an asymmetric approach. Experiencing its sputnik moment in 2017, China crafted its "New Generation Artificial Intelligence Development Plan 2017", according to which it aims to become Global AI Superpower by 2030. China has invested huge capital to gain the lead in this field an in fact, leading in many AI fields including robotics, Self –driving cars and speech recognition. But in 2022, Development of ChatGPT by OpenAI caught China by surprise. China is caught in catch 22 situation. On one hand, it has to compete with USA in the field of Artificial Generative Intelligence, on the other hand it is compelled to adopt a measured approach due to Chinese Communist Party’s (CCP) authoritarian rule and heavily censored media. China has replied to this challenge by vertical development of AI models at the same time leading the world in establishment of AI rules and regulations. USA’s endeavors like banning of chips or restricting access to its Large Language Models (LLMs) may prove to be a minor hindrance, but in the longer run, a strong technological base, increasing reservoir of trained scientists and CCP’s beckoning of AI industry may prove to be the winning strokes for China. However, the future is uncertain yet and AI will remain a fierce battleground between USA and China for years to come.