The United States and China are not only embroiled in an increasingly intense tariff war that could drive the world economy into recession, but also engaged in fierce competition in the field of artificial intelligence. So far, the U.S. is considered the leader in AI technology, but this does not necessarily mean it can simply declare itself the winner of the AI race.

The so-called "DeepSeek effect" - the revolutionary impact of the technology developed by DeepSeek, a local Chinese AI startup - shows how Chinese AI can exert significant influence and power.

Just weeks after DeepSeek made headlines around the globe, Chinese leaders presided over a symposium with tech entrepreneurs, sending a simple yet direct message: leveraging new technologies to help boost economic growth.

The top-down decision-making approach allows China to quickly reap economic benefits from efficiency. Local governments in cities like Shenzhen (home to many well-known tech companies such as Tencent and Huawei) and Shanghai have begun supporting the development of artificial intelligence, hoping to nurture the next DeepSeek.

Last year, China's Ministry of Industry and Information Technology established an Artificial Intelligence Standardization Technical Committee. The current focus is on standardizing real-world AI applications such as generative AI through agreed-upon standards to support industry and economic development.

So far this year, China's rapid progress in the field of artificial intelligence has caught the attention of the United States. In February, the White House announced the formulation of the "Artificial Intelligence Action Plan to Maintain and Strengthen America's Leadership in the Global AI Landscape," seeking public feedback. Major American tech giants and startups, including OpenAI, Meta, Google, Microsoft, and others, submitted their opinions.

Possible outcomes include further restrictions on advanced chips used for generative AI exported from the U.S. to China, as enterprises like DeepSeek rely heavily on products from U.S. chip design firms, particularly NVIDIA.

Many industry analysts believe that the U.S. can maintain a competitive edge in the coming years, especially in areas such as AI reasoning, agent design, and precision. However, although Chinese enterprises' development of AI may not be as advanced as their U.S. counterparts, China is more interested in exploring how to quickly implement AI technology to benefit businesses and the general public.

For example, as I understand, China's supermarket chain Wumart has started experimenting with DeepSeek's AI models to upgrade its customer relationship management system.

There are numerous practical cases of Chinese enterprises applying AI. As these applications increase, investment banking analysts are calling for revaluation of Chinese stocks across multiple industries. They believe that as more companies leverage AI to drive business, these industries hold great promise for rapid revenue growth. The "DeepSeek effect" continues to expand, even becoming a major factor driving up the Chinese stock market this year.

Chinese officials recently proposed an interesting viewpoint at an event: A nation's strength does not solely depend on whether it was the first to invent a new technology, but rather on its ability to effectively apply that technology across various sectors. In terms of AI, its success depends not only on how it develops, but more importantly on how it is used, deployed, refined, and continuously improved through real-world applications.

Therefore, while former President Trump was busy formulating grand plans for global "reciprocal tariffs," many industry executives warned that these tariffs might increase the risk of the U.S. economy falling into recession. Meanwhile, Beijing has firmly decided to leverage the development of AI to drive China's economy.

Although China's AI technology may not yet lead the world, its vast domestic market and the rapid adoption of AI applications by ordinary consumers could have an impact on the U.S.-China AI competition, at least economically.

This article was originally published on the Hong Kong-based South China Morning Post website on April 23, titled "In AI rivalry with the U.S., China scores tangible victories." Written by Chen Shu.

Original source: https://www.toutiao.com/article/7497794145366114854/

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