DeepSeek Catalyst: How China is Constructing Global Tech Competitors
Title: Catalyst DeepSeek: An Insight into China's Strategy for Developing Global Tech Competitors Description: This article delves into the strategies employed by China to nurture and bolster its global technology competitors. It explores the intricate processes and investments fueling the growth of these companies, examining how China's unique approach positions them as formidable players on the international stage. The analysis highlights the challenges and opportunities faced by these tech firms as they expand beyond domestic markets.
TroibNews 
**Editor's Note:** The AI Action Summit 2025 is scheduled to take place in Paris from February 10 to 11. Last month, the Chinese AI company DeepSeek made headlines with its significant influence on the global market, positioning China’s voice and solutions at the center of summit discussions. We continue our series of commentary pieces by CN technology reporter and commentator Yang Zhao, focusing on DeepSeek. The final article in this series expands our view to consider China's technological reform system and the future landscape of AI.
DeepSeek's emergence has not only altered the global perception of China's AI capabilities but has also served as a wake-up call for major tech companies. Historically, China has been in a position of catching up in AI applications; however, DeepSeek’s accomplishments demonstrate that the nation can now compete at the foundational technology level.
Determining exactly how policy influences the development of specific technological advancements is challenging due to the intricate nature of causality. Nonetheless, it is clear that policies play a crucial role in cultivating an innovation-friendly environment. While greatness cannot be predetermined, a thoughtfully crafted institutional framework coupled with the freedom to experiment can certainly facilitate its emergence.
In late 2017, Chinese President Xi Jinping remarked that the country's economy was shifting from a phase of rapid growth to one focused on high-quality development. Over recent years, both central and local governments have prioritized technological innovation. For instance, the restructuring of China's Ministry of Science and Technology aims to enhance the efficiency of the nation's sci-tech governance, with a focus on supporting fundamental research and leveraging innovation to stimulate economic growth. Concurrently, the establishment of a Central Science and Technology Commission reflects an effort to bolster the centralized leadership of the Party over scientific and technological initiatives, indicating that scientific and technological achievements are now recognized as a national priority rather than merely a ministerial concern.
Moreover, China is increasingly focusing on aligning fundamental innovation with market needs. DeepSeek's rise is emblematic of this trend. The company originated in Hangzhou, a city that has also fostered other outstanding firms like Unitree and Game Science, all thriving due to policies that promote innovation and market-oriented growth. DeepSeek's success is not an isolated phenomenon but part of a broader movement in Hangzhou and beyond, as numerous cities in China adopt similar strategies, creating a more vibrant and innovation-driven landscape.
While DeepSeek's achievements do not necessarily imply that China has overtaken the U.S. in AI, they clearly signal that China can make significant strides in core technological areas. More importantly, these developments are steering AI toward a future characterized by greater openness and equity.
Despite U.S. restrictions on semiconductors, TikTok, and trade, China's technological ascent continues unabated. Rather than hindering progress, DeepSeek illustrates how external pressures can catalyze innovation. Interestingly, NVIDIA’s decline in market value has been partly influenced by America’s own chip export policies.
On a global scale, DeepSeek’s open-source strategy stands to revolutionize access to AI, democratizing it and fostering innovation by dismantling the monopolies held by a few tech giants.
Looking ahead, the competition in AI is set to transcend mere technological advancements and evolve into a contest of ideologies. DeepSeek has made its position clear: Openness is the future of AI. Those who adopt this philosophy will shape the next era.
This might be the most important lesson DeepSeek imparts to the world.
**Read more:**
- Catalyst DeepSeek: The Chinese AI startup disrupting the industry
- Catalyst DeepSeek: The innovation behind its cost efficiency
**About the author:**
Yang Zhao leads CN's coverage of science, technology, and environmental issues. He is also the founder of CN's Tech It Out studio, which produces award-winning documentaries, including *Human Carbon Footprint*, *Architectural Intelligence*, and *Land of Diversity*.
Anna Muller contributed to this report for TROIB News
DeepSeek's emergence has not only altered the global perception of China's AI capabilities but has also served as a wake-up call for major tech companies. Historically, China has been in a position of catching up in AI applications; however, DeepSeek’s accomplishments demonstrate that the nation can now compete at the foundational technology level.
Determining exactly how policy influences the development of specific technological advancements is challenging due to the intricate nature of causality. Nonetheless, it is clear that policies play a crucial role in cultivating an innovation-friendly environment. While greatness cannot be predetermined, a thoughtfully crafted institutional framework coupled with the freedom to experiment can certainly facilitate its emergence.
In late 2017, Chinese President Xi Jinping remarked that the country's economy was shifting from a phase of rapid growth to one focused on high-quality development. Over recent years, both central and local governments have prioritized technological innovation. For instance, the restructuring of China's Ministry of Science and Technology aims to enhance the efficiency of the nation's sci-tech governance, with a focus on supporting fundamental research and leveraging innovation to stimulate economic growth. Concurrently, the establishment of a Central Science and Technology Commission reflects an effort to bolster the centralized leadership of the Party over scientific and technological initiatives, indicating that scientific and technological achievements are now recognized as a national priority rather than merely a ministerial concern.
Moreover, China is increasingly focusing on aligning fundamental innovation with market needs. DeepSeek's rise is emblematic of this trend. The company originated in Hangzhou, a city that has also fostered other outstanding firms like Unitree and Game Science, all thriving due to policies that promote innovation and market-oriented growth. DeepSeek's success is not an isolated phenomenon but part of a broader movement in Hangzhou and beyond, as numerous cities in China adopt similar strategies, creating a more vibrant and innovation-driven landscape.
While DeepSeek's achievements do not necessarily imply that China has overtaken the U.S. in AI, they clearly signal that China can make significant strides in core technological areas. More importantly, these developments are steering AI toward a future characterized by greater openness and equity.
Despite U.S. restrictions on semiconductors, TikTok, and trade, China's technological ascent continues unabated. Rather than hindering progress, DeepSeek illustrates how external pressures can catalyze innovation. Interestingly, NVIDIA’s decline in market value has been partly influenced by America’s own chip export policies.
On a global scale, DeepSeek’s open-source strategy stands to revolutionize access to AI, democratizing it and fostering innovation by dismantling the monopolies held by a few tech giants.
Looking ahead, the competition in AI is set to transcend mere technological advancements and evolve into a contest of ideologies. DeepSeek has made its position clear: Openness is the future of AI. Those who adopt this philosophy will shape the next era.
This might be the most important lesson DeepSeek imparts to the world.
**Read more:**
- Catalyst DeepSeek: The Chinese AI startup disrupting the industry
- Catalyst DeepSeek: The innovation behind its cost efficiency
**About the author:**
Yang Zhao leads CN's coverage of science, technology, and environmental issues. He is also the founder of CN's Tech It Out studio, which produces award-winning documentaries, including *Human Carbon Footprint*, *Architectural Intelligence*, and *Land of Diversity*.
Anna Muller contributed to this report for TROIB News
