Author: Dr. LI Enhan, Deputy Director of Token Digital Economy Research Center, CDI

Editor’s note: In the wave of global digitalization and intelligence, AI's role in artistic creation is challenging the foundations of copyright law. Questions about the originality of AI works, their copyright ownership, and the criteria for infringement are now at the forefront for legal experts. Against this backdrop, China and the United States, as major global players, are navigating the uncharted waters of AI and copyright with their distinct legal practices likely to shape international norms.

The growth of artificial intelligence (AI) requires a redefinition of traditional copyright concepts, including authorship, originality, and the attribution of rights and liabilities associated with infringement. While AI creations increase in complexity, the consensus finds that AI should not be granted authorship, as copyright is intended for human creations. However, with technological advancements and increasingly diversified creative forms, this position may encounter greater challenges and debates.

In the U.S., copyright law insists on a conservative approach and stipulates that human authorship is essential for copyright eligibility. This was evident in the case of "A Recent Entrance to Paradise," in which the court clearly stated that the prerequisite for copyright protection is "human authorship," thereby denying copyright registration for AI-generated pieces (Mathur, 2023). The U.S. demands significant human creativity in a work to deem it copyrightable, thus often excluding AI-generated works from copyright protections.

China, in contrast, demonstrates greater flexibility. When assessing AI-generated works, Chinese courts consider both the originality and the degree of human involvement and tend to judge whether works reflect human intellectual input and individuality. In the "Dreamwriter" case, the People's Court of Nanshan District in Shenzhen handed down a judgment in favor of the plaintiff Tencent. It recognized its AI-generated article on stock analysis as eligible for copyright since the article’s structure aligned with the format of the opinion piece and consisted of specific creative choices (Xiao, 2020).

These contrasting standards could lead to diverse future effects. The stringent option might limit the number of AI works eligible for copyright protection, affecting the innovation incentives of AI-related enterprises and individuals. In contrast, an open recognition approach could encourage AI creativity and foster synergy between AI technology and cultural industries. Yet, the latter may also encounter greater AI copyright dispute resolution challenges, necessitating a more nuanced framework for AI copyright recognition.

Furthermore, the conservative leaning of the U.S. may bolster traditional human creative processes and underscore humans' central role in art and culture. Meanwhile, China's flexible recognition could stimulate new forms of artistic and cultural expression. As AI creations may soon become integral to Chinese culture and art, China must prepare its cultural and art industries for the digital impact, addressing concerns such as the diminishing motivation among traditional artists and competitive pressures from AI-generated content in the market.

AI technology is now pushing copyright law into a new era. The contrasting perspectives and practices of China and the United States related to AI copyright reflect different interpretations of human creativity and hint at the future of global copyright law. The challenge for future lawmakers and practitioners will be in reconciling the enduring principles of copyright with the pace of technological innovation.

Reference:

Mathur, A. (2023, Dec 11). Case Review: Thaler v. Perlmutter (2023). Retrieved from Center for Art Law: https://itsartlaw.org/2023/12/11/case-summary-and-review-thaler-v-perlmutter/#post-61801-footnote-ref-0

Xiao, B. (2020, Mar 19). Shenzhen concludes first AI-generated article dispute case [深圳审结首例人工智能生成文章作品纠纷案]. Retrieved from People's Court Daily: http://oldrmfyb.183read.cc/paper/html/2020-03/19/content_166241.htm

Date: Jul 20, 2024

In the first half of 2024, export growth accelerated due to global manufacturing recovery, and consumer goods sales remained steady thanks to supportive policies and other factors. However, the sustained decline in industrial product prices and the persistently low consumer prices suggest that demand remains relatively weak. The real estate market remains sluggish, overall societal expectations are still low, and businesses are under significant operational pressure. To turn the tide, it's crucial for policies to be significantly ramped up as soon as possible to improve expectations and boost confidence in the economy.

The economy showed signs of expansion, but faced mounting pressures.

In the first half of the year, the GDP increased by 5.0% year-on-year at constant prices, marking a slowdown from the same period last year and the entire previous year. The growth rate was 5.3% in the first quarter, but decelerated to 4.7% in the second quarter. The primary sector saw a year-on-year growth of 3.6% in the current quarter, while both the secondary and tertiary sectors experienced a noticeable decline. The swift slowdown in the growth rate of the tertiary sector's GDP could be attributed to adjustments in the statistical approach of the financial industry, reflecting the overall economic strain.

Recovery in external demand drives export acceleration.

In the first half of the year, exports grew by 6.9%, significantly outpacing the same period last year and the entire previous year. According to the latest statistics released by the WTO, the global manufacturing prosperity index continued to rise in the second quarter, and the trade-weighted manufacturing PMI rebounded. Influenced by the global trade recovery, exports in June registered a year-on-year increase of 8.6%, up 1 percentage point from the previous month, reaching the highest point since January 2024. The trade surplus in goods reached its highest since historical data began in August 1994. Despite a significant improvement in the volume of exports since the beginning of the year, the prices of exports have remained low.

Exports contributed to the overall stability of the industrial sector.

In the first half of the year, the added value of the industrial enterprises above designated size grew by 6.0% year-on-year, with the first and second quarters seeing respective increases of 6.1% and 5.9%. Among the three major sectors, manufacturing saw a robust growth of 6.5%, while the electricity, heat, gas, and water production and supply sector grew by 6.0%. The mining industry, however, experienced a more modest increase of 2.4%. Collectively, this indicates a slight overall deceleration in the growth rate. The high-tech manufacturing sector has been a standout, leading the way in high-end manufacturing. The added value of high-tech manufacturing industries above designated size surged by 8.7% year-on-year in the first half of the year, up by 1.2 percentage points compared to the first quarter. Driven by the rebound in exports, the cumulative growth rate of export delivery value for industrial enterprises above designated size has been accelerating month by month. This upward trajectory has been sustained for five consecutive quarters since the second quarter of 2023, underscoring the sector's resilience and growth momentum.

A variety of factors led to a continued decline in overall investment.

In the first half of the year, investment grew by 3.9% year-on-year, marking a slowdown from the first quarter but an acceleration compared to the same period last year and the entire previous year. From the perspective of three areas: Infrastructure investment rose by 5.4%, manufacturing investment by 9.5%, while real estate investment fell by 10.1%, with all these sectors seeing a decrease from the first quarter. Since the beginning of the year, regions have been proactive in initiating projects funded by additional government bonds and accelerating post-disaster reconstruction efforts. However, a slow fiscal tempo and the strain on fiscal spending have led to a continuous decline in narrowly defined overall infrastructure investment. The new real estate policies have started to take effect, with the year-on-year decrease in real estate investment narrowing for the first time this year.

The deceleration in the growth of consumer spending requires close attention.

In the first half of the year, China's total retail sales of consumer goods increased by 3.7% year-on-year, a slowdown compared to the first quarter, the same period last year, and the entire previous year. Among these, retail sales of goods rose by 3.2%, catering services saw a growth of 7.9%, and the retail sales of services were up by 7.5% year-on-year. Overall, the performance has weakened compared to the first quarter.

The persistent decline in prices needs to be reversed promptly.

In the first half of the year, the Producer Price Index (PPI) fell by 2.1% year-on-year, marking a 0.6 percentage point decrease in the rate of decline compared to the first quarter. The overall upward trend in international prices for crude oil and non-ferrous metals has led to increased prices in related domestic industries. Prices in sectors such as coal, building materials, and equipment manufacturing have seen a reduction in the rate of decline. Policies including large-scale equipment renewal and trade-ins of old consumer goods for new ones are gradually being implemented and are beginning to take effect, contributing an improved outlook for the steel market. The slowing decrease in PPI is contributing to a recovery in the Consumer Price Index (CPI), but the ongoing negative growth in PPI continues to exert downward pressure on the CPI. There has been a slight decline in the growth rate for service prices: in the first half of the year, service prices were up by 0.9% year-on-year, with the growth rate falling by 0.2 percentage points from the first quarter.

Date: June 24, 2024

On June 24, 2024, in the roundtable on collaboration between universities and think tanks on climate action, green and sustainable development, Prof Fan Gang, President of China Development Institute, underscored that it is critical for the international community to expand dialogues and exchanges of knowledge sharing on green technological innovation and application. He further disputed the so-called “over capacity” of Chinese electric vehicle, as China’s domestic EV market continued to grow and saw EV penetration rate soaring from 5.4% in 2020 to 31.6% in 2023. Looking at the global new energy sector, current production is yet to meet market demand and serious shortage of high-quality product remains. China will continue the effort to meet UN Sustainable Development Goals and accelerate the development of renewable energy industries. The roundtable was attended by Tan Sri Dr Koh Tsu Koon, Former Chief Minister of Penang.

Date: June 25, 2024

The 2024 World Green & Sustainability Summit held on June 25, 2024 in Penang Malaysia, organized by World Digital Chamber, World Green Organization, KSI Strategic Institute for Asia Pacific and supported by China Development Institute, convened government leaders, think tankers, and entrepreneurs from APEC countries to address strategic issues and key challenges in promoting partnership for climate action, energy transition and the business communities to pivot towards sustainable investments, green growth and green finance. In his opening speech, President of CDI Prof. Fan Gang urged collaboration on climate action and stressed the importance of green products and green technologies in contribution to sustainable growth. The summit was attended by Governor of Penang Tun Dato’ Seri Utama Ahmad Fuzi.