The “Bilateral Congress” sessions of the Chinese National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) were held on March 5-March 11, 2025.[1] On March 9, 2025, a session focused on DeepSeek and the future of artificial intelligence. The launch of DeepSeek started an important transformation process in the AI technology sector, as the robot quickly overtook OpenAI’s ChatGPT to become the most downloaded free iPhone application in the United States (US). This rapid development caused chipmaker Nvidia to suffer huge losses, wiping out nearly $600 billion in market capitalization on the US stock exchange.
Wu Qing, Chairman of the China Securities Regulatory Commission, said that DeepSeek’s success is part of China’s rise in the field of artificial intelligence and that he sees the company’s young talents as the driving force of the country’s technological progress. China’s skilled labor force exceeds 200 million, including more than 60 million highly qualified individuals. The country also has the largest R&D workforce in the world. Backed by a growing and developing talent pool, China’s innovation-driven economy is advancing rapidly. In 2024, the value-added output of new growth drivers (new industries and innovation) will exceed 18% of GDP, while the value-added output of the high-tech manufacturing sector will grow at an annual rate of 8.9%, outpacing overall industrial growth by 3.1 percentage points.[2]
In recent years, China has become a global powerhouse with its rapid development in digital technologies. Its investments and strategic moves in areas such as AI, 5G, big data and digital payment systems have not only accelerated China’s economic development, but have also reshaped technology standards and digital norms worldwide. China’s digital rise is not just a local phenomenon; it is redefining global trade, security, and even diplomatic strategies. In this context, China’s technological supremacy is creating a power dynamic that is transforming competition with Western countries and the understanding of digital sovereignty. China’s digital revolution affects not only economic development but also global political and social structures. Therefore, the global implications of China’s digital rise constitute one of the most important areas of analysis of the 21st century.
In January 2016, the Chinese Academy of Engineering launched a major strategic consultative research project called Artificial Intelligence (AI) 2.0 in China. Led by the Chinese Ministry of Science and Technology, more than 220 AI experts from universities, institutes, companies and governments participated in discussions and contributed to the drafting of the Next Generation Artificial Intelligence (NGAI) Development Plan. The State Council announced 15 mega-projects with an implementation period until 2030, which are intended to reflect and cover new developments in both national and international science and technology priorities and needs. A 16th program, the NGAI Development Plan (2015-2030), was officially launched by the State Council of China in July 2017. This is the first systematic and strategic AI plan for China in this century. The plan sets out the general idea, strategic goals, main tasks and supporting measures for China’s AI development in three successive steps until 2030.[3]
First, by the end of 2020, China will close the technological gap with world-leading countries, making its AI industry internationally competitive at the highest level. Second, by 2025, China will make significant breakthroughs in basic research in AI and has formulated the NGAI framework. Some technologies and applications will reach the world-leading level, and AI will become the main driving force for China’s industrial upgrading and economic transformation. Third, by 2030, China is expected to become one of the world’s leading AI innovation centers and develop a comprehensive set of regulatory, legal and ethical principles for AI development.[4]
China’s digital rise is shaped not only by economic growth strategies but also by international competitiveness. In this regard, investments in artificial intelligence and digital infrastructures contribute to China’s stronger position in the global arena. In particular, the resilience of Chinese stock markets despite the US tariffs on China is supported by the Chinese government’s incentive policies in strategic sectors such as digitalization and artificial intelligence. While US President Donald Trump’s additional tariffs on Chinese products may affect China’s exports in the short term, in the long term, government support for advanced technologies such as AI positively affects economic growth expectations.
On March 7, 2025, the Shanghai Composite Index closed at 3372.55, down 0.25%, indicating a slight decline in the markets in general. This means that the value of shares on the stock exchange decreased by 0.25% compared to the previous trading day. In February 2025, President Trump initiated an additional 10% tariff on Chinese products and then increased it to 20%, escalating trade tensions. These developments had a negative impact on China’s exports, causing China’s exports in the January-February period to fall below expectations. China’s exports increased by 2.3% in this period, reaching 539.94 billion USD, while market expectations were around 5%. However, the impact of the US tariffs and its reflection on stocks led to fluctuations in the Chinese stock market.[5]
This year’s Congress is expected to set economic growth targets at around 5% and the fiscal deficit at 4% of GDP. In this regard, China’s digital strategies and developments in the field of artificial intelligence will continue to be one of the driving forces of economic growth despite uncertainties in trade policies.[6]
China is seriously embracing DeepSeek to drive rapid growth in the AI sector. DeepSeek is expected to contribute 20 to 30 basis points to the Chinese economy by 2030. DeepSeek has made a significant splash in China’s AI ecosystem and accelerated its expansion in the industry. These achievements make DeepSeek a more effective and affordable alternative to its US competitors. The effects of AI integration through DeepSeek are expected to be felt on China’s economic growth as early as 2026. This could lead to a 20-30 basis point increase in China’s long-term GDP by 2030. Chinese President Xi Jinping recently welcomed DeepSeek founder Liang Wenfeng to a high-level meeting, giving him a front row seat among the country’s most important business leaders.[7]
As a result, it highlights China’s commitment to AI-driven economic growth. Major Chinese companies such as Alibaba, Huawei and Tencent are seizing the opportunity to integrate DeepSeek’s technology into their operations. AI adoption will drive productivity gains both domestically and internationally in China. DeepSeek’s rapid rise and the Chinese government’s strategic support clearly reflect China’s ambitions to lead the global AI revolution. By the end of 2025, individual companies like DeepSeek in China are projected to become key instruments of national power, enhancing global competitiveness.
[1] “NPC 2025: Agenda and Daily Schedule”, NPC Observer, https://npcobserver.com/2025/03/china-npc-2025-agenda-daily-schedule/, (Date of Access: 09.03.2025).
[2] Ibid.
[3] Wu, F., Lu, C., Zhu, M. vd., Towards a new generation of artificial intelligence in China. Nat Mach Intell 2, 312-316 (2020). https://doi.org/10.1038/s42256-020-0183-4
[4] Ibid.
[5] “Shanghai Stock Market: AI Rally and Economic Stimulus Overcome ‘Tariff Risk’”, Bloomingbit, https://bloomingbit.io/en/feed/news/84596, (Date of Access: 09.03.2025).
[6] Ibid.
[7] “The rapid rise of the DeepSeek in China and emerging industries”, Modern Diplomacy, https://moderndiplomacy.eu/2025/03/09/the-rapid-rise-of-the-deepseek-in-china-and-emerging-industries/, (Date of Access: 09.03.2025).
