
China to launch 100+ DeepSeek‑like AI tools in 18 months
What's the story
China's artificial intelligence (AI) capabilities are on the verge of triggering a major wave of innovation, a former top official has predicted. Zhu Min, ex-deputy governor of the People's Bank of China, said at the World Economic Forum in Tianjin that over 100 DeepSeek-like breakthroughs could be seen in just 18 months.
Economic impact
Min's predictions for China's AI future
Min emphasized that these new software products will "fundamentally change the nature and the tech nature of the whole Chinese economy." He attributed this 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 an intensification of the race for supremacy in advanced technologies with the US.
Trade war
US considers China a major competitor in AI
The US considers China a major competitor in AI, especially after DeepSeek's low-cost but powerful model took the global tech industry by storm in January. The US is also trying to stop China from getting advanced semiconductor manufacturing equipment and high-end AI chips from NVIDIA for training purposes due to national security concerns.
Market response
DeepSeek's launch and its implications
The launch of DeepSeek sparked a rally in China's tech stocks, raising hopes for Chinese competitiveness despite trade tensions with the Trump administration and economic challenges at home. Bloomberg Economics estimates that high-tech's contribution to China's gross domestic product (GDP) rose to nearly 15% in 2024 from under 14% in the previous year, and could rise above 18% by 2026. Notably, China's GDP likely grew faster than 5% in Q2, as per an official of the Chinese central bank.
Trade effects
Long-term trade agreement with China remains uncertain
Min warned that the uncertainty caused by US tariff policy could lead to negative growth in global trade this year. He said, "The entire trade industrial chain has begun to slow, investments have begun to stop, so the impact is greater than the actual tariff rate." American tariffs on goods remain high, despite a trade truce negotiated with the US last month. A long-term agreement with China is still uncertain.