The Chinese search giant Baidu has left the US-led Partnership on Artificial Intelligence (PAI) alliance amidst growing tensions between the two largest economies in the world. Baidu was the only Chinese member on the alliance, which aims to promote ethical development and implementation of Artificial Intelligence (AI) as well as address the ethical challenges that arise from AI.

Baidu cited financial constraints as the reason for the exit. A statement released by the search giant reads, “Baidu shares the vision of the Partnership on AI and is committed to promoting the ethical development of AI technologies. We are in discussions about renewing our membership, and remain open to other opportunities to collaborate with industry peers on advancing AI.”

Baidu operates China’s biggest web search engine and is often referred to as China’s Google. Apart from that, Baidu also has diversified interests in AI segments, including self-driving cars. It’s exit is detrimental to PAI as the alliance envisioned global cooperation for conversations on AI development. Terah Lyons, executive director of PAI, says the company cited a weaker financial outlook for the decision, adding: “Baidu remains committed to our mission and hopes to be able to resume membership in 2021.”

While these are the reasons cited by Baidu, experts point out that the decision comes amidst growing tensions and criticisms of Chinese AI companies and ever more tense and hostile attitude from Washington DC. The US government has been openly critical of the way Corona-19 went unchecked in Wuhan and led to a global pandemic. In addition to that, US has also come down on the communist nation’s trade practices, its mass imprisonment and alleged torture of Uyghur Muslims in “re-education” camps, and breaking the semi-autonomy of Hong Kong.

Since the past year, the US and China appear to have been engaged in a Cold War focused over tech such as AI, 5G and advanced microchips. Last October, six Chinese companies were banned by the US, citing their involvement with human rights abuse. Last year, six AI companies from China were added on an ‘Entity List’ in the US, which prevents them from working with US-based companies without explicit permission from the US government.

This March, Huawei, Chinese telecom giant was accused of being a national threat and prevented from obtaining US-made latest microchips for AI advancement due to tightened restrictions. Huawei CFO Meng Wanzhou last year on allegations of using the company’s subsidiaries to flout US sanctions against Iran. In retaliation, the Chinese arrested two Canadian businessmen under the charges of being spies. Early this June, the US also joined the G7’s Global Partnership on Artificial Intelligence alliance to counter China’s “twisting technology”.

It is hard to say what this power struggle could mean for collaborative technological advances on a global level, but experts argue that keeping China out of these dialogues may be counter-productive