Directions: Below, you will find a set of five sentences. You need to arrange these sentences in the correct sequence to form a coherent paragraph. After doing so, answer the questions that follow.

(A) Western countries adopt a Eurocentric, risk-based approach for AI regulation.
(B) Governments worldwide grapple with regulating AI due to its transformative potential.
(C) In contrast, Japan and China have fundamentally different regulatory models.
(D) These models in Eastern countries diverge significantly from the Western system.
(E) They categorize AI applications into 'unacceptable,' 'high,' 'limited,' and 'low' risks.