# Japan Courts India and Malaysia to Build an AI Bloc Beyond the US-China Duopoly

Tokyo is establishing artificial-intelligence dialogues with Global South partners to cut reliance on top American and Chinese firms, as Asian workers absorb the technology's early labor shocks.

- Published: 2026-07-25T05:15:08.679Z
- Canonical: https://polylog.news/2026-07-25/japan-courts-india-and-malaysia-to-build-an-ai-bloc-beyond-t
- Publisher: Polylog (Global desk)
- Section: tech
- Sources: [South China Morning Post (Japan courts partners)](https://www.scmp.com/news/asia/east-asia/article/3361827/japan-courts-india-malaysia-escape-us-china-ai-duopoly?utm_source=rss_feed), [South China Morning Post (Singapore workers)](https://www.scmp.com/news/asia/southeast-asia/article/3361820/singapores-young-workers-cling-side-hustles-survive-ai-age-its-exhausting?utm_source=rss_feed)

Japan has been building dialogue frameworks on artificial intelligence with India, Malaysia, and other Global South partners in an effort to [reduce reliance on top US and Chinese firms](https://www.scmp.com/news/asia/east-asia/article/3361827/japan-courts-india-malaysia-escape-us-china-ai-duopoly?utm_source=rss_feed) and to promote its own companies abroad. The South China Morning Post reported that the outreach reflects a growing recognition among mid-sized economies that the technology's foundations are concentrated in two rival powers.

The strategy is a hedge against dependence. By setting shared standards and joint projects with partners outside the American and Chinese spheres, Tokyo aims to remain influential as global technology divides into competing camps. India and Malaysia offer large markets and engineering talent without forcing a choice between Washington and Beijing.

The human side of the same transition is already visible. In Singapore, the newspaper reported, young workers are [taking on second jobs](https://www.scmp.com/news/asia/southeast-asia/article/3361820/singapores-young-workers-cling-side-hustles-survive-ai-age-its-exhausting?utm_source=rss_feed) to protect their incomes as automation reshapes white-collar work. The same technology that governments are racing to control is unsettling the labor markets of the region building around it.

## What this means

A push by mid-sized economies to build AI capacity outside the US-China duopoly accelerates the division of global technology into competing blocs, which reshapes supply chains, standards, and where chips and models are bought. The exposed parties are the dominant American and Chinese platforms that stand to lose captive markets, the Japanese and Global South firms seeking new customers, and workers whose jobs shift as the technology spreads. The direction divides between a world of interoperable regional systems and one of strictly separated spheres, and each new bilateral AI framework is a step toward the latter.

## What to watch

- Concrete AI agreements or joint ventures emerging from Japan's dialogues, which would turn diplomacy into market share.
- Whether India and Malaysia commit to non-US, non-Chinese standards or hedge across all camps.
- Labor-market data on how quickly AI is displacing white-collar roles in Asian economies.