Beijing is converging on a "tiered governance" approach to open-weight AI models, under which basic capabilities would be released freely, frontier capabilities would face security review, and the most sensitive models would be confined to domestic use. Support for open weights offsets a compute deficit that leaves the People’s Republic of China (PRC) roughly two years behind the United States, gives domestic chipmakers a model to optimize against, and exploits the absence of U.S. legal tools for regulating published weights. Open weights serve Beijing's security priorities, allowing government, financial, and military users to run models offline on classified data. On July 16, PRC AI startup Moonshot AI released its latest model, Kimi K3, which beat every rival in blind developer testing for frontend coding. On July 27, Moonshot uploaded the full weights one day ahead of schedule. At the World Artificial Intelligence Conference in Shanghai in July, 29 countries signed on as founding members of a new World AI Cooperation Organization, headquartered in Shanghai, aiming to close the "intelligence gap" for developing countries. The approach resembles one Beijing took more than a decade ago when it established the Asian Infrastructure Investment Bank (AIIB).