China Expected To Achieve Over 100 AI Breakthroughs Amid Tech Rivalry

China is on the verge of a major AI innovation surge, with more than 100 breakthroughs similar to the DeepSeek model expected within the next 18 months, according to Zhu Min, former Deputy Governor of the People’s Bank of China. These advancements are anticipated to fundamentally transform the Chinese economy by leveraging the country's vast engineering talent, large consumer base, and supportive government policies. Despite U.S. efforts to restrict China's access to advanced semiconductor equipment and AI chips, Beijing is focusing on domestic technology firms like Huawei to advance its chipmaking capabilities. The emergence of DeepSeek has boosted Chinese tech stocks and signifies China’s strategic push to close the technological gap and assert dominance in AI, which is increasingly viewed as a key front in the broader geopolitical competition between the U.S. and China. Bloomberg Economics projects that the high-tech sector’s contribution to China’s GDP could rise from 15% in 2024 to over 18% by 2026, reflecting the growing importance of AI-driven technologies in the economy. This AI race exemplifies the intensifying rivalry between the two global powers to shape the future economic and technological order.