What is the story
China's AI capabilities are on the verge of causing a major wave of innovation, the former top official predicts. Zhu Min, former division governor of the People's Bank of China, said at Tianjin's World Economic Forum, more than 100 Deepseek-like breakthroughs will be seen in just 18 months.
Min's predictions for China's AI future
Min emphasized that these new software products will “fundamentally change the nature of the Chinese economy and the nature of technology.” He attributes the transformation to China's vast pool of engineers, its huge consumer base and supportive government policies. This optimistic view on China's AI future suggests a strengthening competition for hegemony in advanced technology with the United States.
The US sees China as a major competitor for AI
The US sees China as a major AI competitor, particularly after Deepseek's low-cost but powerful model swept the global technology industry in January. The US is also trying to stop China from acquiring advanced semiconductor manufacturing equipment and Nvidia's high-end AI chips for training purposes due to national security concerns.
Deepseek's release and its meaning
The launch of Deepseek has sparked a rally of China's tech stocks and has raised hopes for China's competitiveness despite trade tensions between the Trump administration and economic challenges at home.
Bloomberg Economics We estimate that high-tech contributions to China's gross domestic product (GDP) could increase by nearly 15% in 2024 from less than 14% the previous year, and could increase by more than 18% by 2026.
Long-term trade agreements with China remain uncertain
Min warned that the uncertainty caused by US tariff policies could lead to negative growth in global trade this year. He said, “The impact is greater than the actual tariff rates as the entire trade industry chain is beginning to slow down and investments are beginning to halt.” Despite a trade ceasefire negotiated with the US last month, US tariffs on goods remain high. The long-term agreement with China is still uncertain.
