UBTECH's Walker S1 industrial humanoid robot in operation at Foxconn's Longhua facility in Shenzhen, South China's Guangdong Province, on December 11, 2024. Photo: Courtesy of UBTECH
The number of generative artificial intelligence (AI) users in China has exceeded 250 million, creating a broad AI "mass base" that is truly shocking. At the same time, the Chinese AI company DeepSeek has caused ongoing hot discussion both at home and abroad, and the global attention to the "trends" of technology investment is once again focused on China. From major breakthroughs in technology to widespread market applications, each new footprint of China's AI technology development is quietly changing the world's assessment of China's future progress.
"250 million people embracing AI" is the latest manifestation of China's achievements in digital empowerment. Prior to this, China had more than 1.1 billion internet users, the penetration rate of mobile payment among mobile internet users in the country reached 86 percent, and 5G base stations accounted for more than 60 percent of the global total. All of these provide a fertile ground for the rapid implementation of AI technology. Letting the fruits of science and technology benefit all people and promoting the whole society to share those fruits is what China has always been striving for. Chatbot apps on mobile phones, along with food delivery robots in restaurants and dancing robots featured in this year's Spring Festival gala, have put ordinary Chinese citizens at the forefront of the world in enjoying the age of intelligence. This also means that China's AI products can be trained and optimized based on a vast array of application scenarios and rich feedback from user demand, thus driving technological innovation and achieving efficient replication and promotion.
Many in the international community were astonished by the sudden rise of DeepSeek; however, it did not emerge without foreshadowing. Just as "250 million people embracing AI" illustrates, this rise vividly reflects China's unique advantages in technological and industrial development: a massive market with both scale and potential, policies that strongly support innovative enterprises, an open and competitive environment, a highly skilled talent pool with robust educational and research foundations, a full-spectrum manufacturing ecosystem providing diverse application scenarios, as well as advanced, secure, and reliable infrastructure. It can be said that the wave of emerging Chinese tech "new forces," exemplified by DeepSeek, is seizing the opportunities presented by Chinese modernization.
When asked how it assesses its impact on China's economy, DeepSeek, the AI model, predicts that it could contribute 0.8 percentage points to China's annual economic growth rate and generate synergistic effects across 58 sub-sectors. The rapid breakthroughs and adoption of AI in China are overturning the so-called "China economic peak" narrative from an entirely new dimension. According to McKinsey & Company, generative AI is expected to be a significant contributor to China's economy, with the potential to add up to $2 trillion to GDP. We are witnessing a surge of AI integration across industries, from government services to finance, from autonomous driving to smart healthcare. In this wave of enthusiastic innovation, new industries and momentum are growing rapidly, accelerating the formation of new quality productive forces. This has proven that AI in China is not a short-term buzzword, but it could become a long-term engine for the country's high-quality economic development.
International capital is expressing optimism about China's AI industry with real investments. Since the Spring Festival, international investors have increased their holdings in Chinese tech stocks. Bloomberg reported that hedge funds have been piling into Chinese equities at the fastest pace in months as bullishness on the DeepSeek-driven technology rally adds to hopes for more economic stimulus. Deutsche Bank also remains optimistic about the Chinese market. A recent report stated that China's disruptive innovation is reshaping the competitive landscape of industries and that China's valuation discount should turn into a premium at some point in the future, which fully reflects international capital's confidence and expectations for China's AI industry.
Equally compelling is the response from competitors. Recently, Elon Musk has accelerated the launch of Grok3, while Meta and Google have enhanced their collaboration with Chinese cloud computing companies, seeking synergies in computing power and data. In overseas markets, the successful implementation of AI large models by companies such as Alibaba and iFlytek, along with the accelerated expansion of cloud service providers like Tencent Cloud, Huawei Cloud, and Alibaba Cloud, showcases the international influence of Chinese enterprises in the technology sector. The essence of this influence lies in the inclusive spirit of empowering the "Global South" through Chinese technology. In the future, the spillover effects of Chinese AI technology will further manifest through initiatives like the "Belt and Road" digital cooperation and the construction of international open-source communities.
General Secretary Xi Jinping has pointed out that innovation is the soul of a people, the source for a country's prosperity, and the deepest national endowment of the Chinese nation. With 250 million people embracing AI, this marks a milestone in China's innovative strength and sounds rallying call for industrial upgrading. Today's China not only has the capability to break the prejudice of the "China economic peak" narrative with disruptive technologies but also possesses the vision to nurture global progress through an open ecosystem. On the marathon track of technological innovation, China is confidently contributing to the advancement of the world economy and human civilization.
