DeepSeek and Beyond: China’s Technological Revolution in the 21st Century

The rapid rise of Chinese AI chatbot DeepSeek has captured global attention, but it’s just one part of a broader trend—Chinese apps are climbing the charts worldwide. From TikTok and CapCut to Xian and Teemu, Chinese digital platforms are making a major impact. And it’s not just in the digital sphere—China is asserting dominance in several key technological industries.

Take the automotive sector, for example. China has surpassed traditional motoring powerhouses, selling more cars than any other country, largely driven by the success of electric vehicle (EV) giants like BMW. A significant contributor to this dominance is China’s leadership in battery production, a crucial component of the EV industry. Similarly, the country holds a near-monopoly in solar panel manufacturing, controlling an estimated 80–95% of the global supply chain. By 2028, it is projected that 60% of the world’s renewable energy will be generated in China.

DeepSeek: A Sputnik Moment

China also dominates the drone industry, with a 70% market share led by Shenzhen-based DJI. Three of the world’s top ten drone manufacturers are Chinese. In cutting-edge fields like quantum computing, Chinese researchers publish more papers annually than any other country, and in some areas, they even surpass traditional tech leaders like the United States. The same pattern holds in artificial intelligence (AI), where Chinese companies now file more patents than any other nation. The success of DeepSeek proves China’s ability to challenge U.S. tech giants in AI development.

So, how did China achieve this level of technological advancement? It all stems from a long-term strategy. In 2015, the Chinese government launched an ambitious initiative called Made in China 2025, aiming to transition from a low-cost manufacturing hub to a global tech powerhouse. The plan identified ten key industries and set over 250 specific targets. According to an analysis by the South China Morning Post, 86% of these goals have been met, with some, like EV production and renewable energy, exceeding expectations. While the South China Morning Post has been criticized for a pro-China bias, many analysts agree that Made in China 2025 has been a success.

China’s approach to achieving these goals has been a mix of state-backed capitalism, strategic funding, and attracting foreign talent. Government policies have guided research priorities, provided substantial financial support, and encouraged foreign firms to collaborate with Chinese companies through joint ventures. According to U.S. congressional research, China planned to allocate $1.5 trillion for research, development, and foreign acquisitions, with over $627 billion already spent by 2020. Cities across China have become hubs for specialized technological innovation.

Made in China 2025 was so successful that after just a few years, the government stopped using the term as it was antagonizing rivals. But it was too late. Over the years, the West has imposed restrictions and sanctions on China regarding sensitive technologies. But this huge external threat has wakened up the Chinese and kind of forced them to pursue a self-sufficiency strategy in this advanced technology. There is an old saying in China: Life always finds its way out. Huawei is a great example of this.

Data as the New Oil

In 2019, it was top of the world in 5G equipment. It had a huge market share in mobile phones too. All of that took a major hit though when the US led widespread sanctions against the company, citing national security concerns around spying. against the company, citing national security concerns around spying. Huawei’s market share shrank, and it couldn’t get the microchips it needed to keep innovating. But it pivoted into microchip manufacturing and is now a major player in that too. In 2023, it released a phone with a microchip far beyond what the rest of the world thought was possible for the company or the country. A similar situation happened with the viral new chatbot DeepSeek.

The firm says it couldn’t get the most powerful chips to train its models, so it says it made do with older ones and innovated new techniques. They built the impressive bot for far less money, with far less kit.   For the US, it came as a shock. DeepSeek AI from a Chinese company should be a wake-up call for our industries, and we need to be laser-focused on competing to win. TikTok too has taken the West by surprise. It’s the first non-US social network to succeed in the last 10 years. Its enormous success is under the spotlight though and under threat from potential intervention by the US on national security grounds.

Despite its impressive technological strides, China has not achieved all its Made in China 2025 goals. The country still lags in semiconductor manufacturing, and US sanctions continue to stifle progress in this sector. In response, the U.S. government and private firms are pouring hundreds of billions of dollars into maintaining their lead in chip technology and AI. In January 2024, U.S. tech giants committed to investing $500 billion in AI infrastructure. Other major economies, including Germany and Japan, have also introduced counter-strategies to protect their technological dominance.

While global powers race to maintain their competitive edge, there’s no denying that China has emerged as a formidable leader in high-tech innovation. With ambitious goals, substantial resources, and a patient, long-term approach, it is shaping the future of global technology in ways that are impossible to ignore.