China is making big moves in artificial intelligence, and it’s not just about business—it’s about global competition, especially with the U.S. Encouraged by the success of its DeepSeek AI platform earlier this year, China is going all-in on AI to strengthen its economy, military, and technological independence.
But why is China so determined? The answer lies in the ongoing trade tensions with the U.S. With restrictions on high-tech imports, China sees AI as a way to reduce reliance on foreign technology and gain an edge in the global race.
China’s rapid AI progress has been turning heads, especially after DeepSeek sent shockwaves through Wall Street, causing a $589 billion loss for Nvidia stockholders in January. Despite the U.S. banning the supply of advanced chips, China has managed to keep up, leveraging older-generation Nvidia chips to power AI models nearly as capable as ChatGPT.
Experts are amazed at how quickly China has closed the gap. According to Jeffrey Towson from TechMoat Consulting, “China used to be one to two years behind the U.S. Now, it’s likely just two to three months.”
China isn’t just developing AI for chatbots. It’s also making huge strides in large language models (LLMs), video generation, and robotics. Alibaba’s Qwen is now seen as a top global LLM, while Kling AI and Minimax lead in AI-powered video creation.
Unlike the U.S., where private companies drive AI development independently, China takes a centralised approach. The government directly supports AI research, working with private companies and universities to accelerate innovation.
Back in 2017, China set a bold goal—to become the world leader in AI by 2030. One of its biggest moves has been creating the National Computing Power Grid, a shared infrastructure that gives AI startups access to computing power without needing massive individual investments.
As Rogier Creemers from Leiden University puts it, “China has the most elaborate AI strategy compared to any other country.”
The AI race between China and the U.S. is intensifying, especially in robotics. According to Towson, “AI plus robotics is where China will take a commanding lead, just like in electric vehicles.” Companies like Unitree are already setting global trends in AI-powered robots for industries, healthcare, and even personalised home assistants.
But not everything is smooth sailing for China. Baidu’s CEO, Robin Li, recently admitted that China still lags behind OpenAI’s latest GPT-4 model, calling it "huge pressure” for Chinese tech companies. While China is catching up fast, the challenge remains.
One of the biggest concerns for China’s AI industry is government censorship. While companies like DeepSeek and Baidu’s Ernie Bot are developing powerful models, they face a major hurdle—restricted access to diverse global data. This could slow down advancements in LLMs, as AI models learn best when trained on vast, unrestricted datasets.
On the other hand, China is doubling down on AI applications in specialised industries, such as healthcare, industrial automation, and surveillance. AI is already improving medical diagnoses in areas like cancer detection and fracture analysis, where political censorship has little impact.
The U.S. has placed strict bans on exporting advanced AI chips to China, but China isn’t sitting back. Companies like Huawei are proving that they can design and manufacture advanced chips despite these restrictions.
Experts believe China is making rapid progress in building an independent semiconductor supply chain. While high-end chip manufacturing remains a challenge, China is optimizing AI models to work efficiently on less powerful chips—a smart workaround to U.S. bans.
China isn’t just using AI for business—it’s also integrating it into military operations.
For instance, the Chinese air force now uses AI-powered biometric tests to screen potential pilots, analyzing biological signals to detect health risks that human evaluators might miss.
Even more concerning, Chinese military researchers have reportedly used Meta’s Llama model to develop AI tools for defense applications, raising concerns about how AI could reshape future conflicts.
China’s AI push is not just about competing with the U.S.—it’s about becoming self-reliant. While AI censorship and chip restrictions remain obstacles, China’s centralised approach, government support, and relentless innovation are keeping it in the global race.
With advancements in AI-powered robotics, healthcare, and military tech, China is making it clear—it’s not just catching up; it’s aiming to lead the AI revolution. The question is: How will the U.S. respond?
By clicking "Accept", you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in improving your experience.
