China has been making significant strides in the field of artificial intelligence (AI) in recent years. Encouraged by the success of its DeepSeek platform in January, the country’s leaders are now actively promoting the use of AI in various sectors to compete with other countries, particularly the United States, in business and military spheres.
The Chinese government has recognized the potential of AI as a crucial tool in overcoming U.S. restrictions on Chinese businesses. This became evident when DeepSeek caused a major shakeup on Wall Street, resulting in a loss of $589 billion for Nvidia stockholders in late January. In response, the Chinese government has been working closely with the private sector and universities to advance and deploy AI technology, reducing their dependence on imported high-tech products.
According to Lourdes Casanova, director of Cornell University’s Emerging Markets Institute, “The government in China works directly with the private sector and universities in the advancement and deployment of AI technology and are reducing their dependence on imports of high-technology products.”
In recent weeks, China has launched several new AI models, including Manus, which experts say can rival the latest model of ChatGPT. Industry experts were surprised to find that DeepSeek was equally efficient as ChatGPT, despite using older generation Nvidia chips. This is significant as the U.S. has banned the supply of advanced chips to China.
Jeffrey Towson, owner of Beijing-based TechMoat Consulting, told VOA, “China and the U.S. have pulled way out front in the AI race. China used to be one to two years behind the U.S. Now, it is likely two to three months.” He also added, “Alibaba’s Qwen is now a clear leader internationally in LLMs [large language models]. Chinese Kling AI and Minimax are arguably the global leaders in video generation.”
The Chinese government has been actively involved in promoting AI development in the country. In 2017, China released an AI development program with the goal of becoming a world leader in this field by 2030. The government’s Next Generation Artificial Intelligence Development Plan stated that AI would be adopted across different sectors, driving economic transformation.
“China has the most elaborate AI strategy compared to any other country,” said Rogier Creemers, assistant professor in Modern Chinese Studies at Leiden University in the Netherlands. He also added, “China has established a National Computing Power Grid – somewhat like electricity grids – making it possible for Chinese AI companies to invest less in their own computing power. In the U.S., each company must fend for itself.”
The U.S. has taken notice of China’s advancements in AI, particularly with the updated GPT4 large language model of ChatGPT. Several top-ranking CEOs of Chinese tech companies, including Baidu’s Robin Li, have expressed concern and a sense of crisis after seeing the updated ChatGPT. Baidu, which has launched Ernie Bot, stated that “the gap [between China] and leading international levels [in the field] has widened.”
Towson believes that China will take a commanding lead over the U.S. in AI and robotics, just like it did in electric vehicles. He said, “Chinese companies like Unitree are already pulling ahead. Watch for China to surprise everyone in personalized robots, industrial robots, and specialty robots.”
One of the key advantages China has in the development of AI is the government’s control and involvement. Chinese President Xi Jinping recently convened a meeting with heads of private companies, including tech firms, urging them to “show your talent” in overcoming challenges such as an economic slowdown and U.S. restrictions on Chinese businesses.
However, there are concerns that the growth of large language models, such as the ones used in DeepSeek and ChatGPT, may be hindered by media censorship in China. Creemers stated, “There are discussions that the growth of large language models – the technology behind chatbots like DeepSeek and ChatGPT – may be hindered by media censorship because the models will have less diverse data to work with.” On the other hand, the government’s control also ensures industrial policy coordination, which is essential for the growth of AI in China.
China is also focusing on specialized software for industries like healthcare, which can tolerate political censorship. Chinese AI models are improving diagnostic accuracy in diverse areas, from detecting rib fractures to cancer.
Despite the U.S. ban on advanced chips, Casanova believes that it is only a matter of
