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Views /Opinion

The DeepSeek moment: How does China make it?

Cao Xiaolin

12 Mar 2025

The DeepSeek R1 Artificial Intelligence (AI) model, developed by a Chinese company DeepSeek, has been proved to be on par with similar models from companies such as ChatGPT maker OpenAI, and more cost-effective. DeepSeek R1 became available on several platforms including Nvidia, Amazon and Micrisoft on the same day. DeepSeek is expected to emerge as a leader in open-source AI. As the world is witnessing the “DeepSeek moment”, it prompts the question: How does China create such a remarkable AI product?

China has been developing new quality productive forces in AI industry. In the new round of scientific and industrial revolution, the AI has become an important development driver of new quality productive forces. China is embracing the AI transformation while attaching great importance to the safety and security issues. It works hard to advance AI technologies by supporting entrepreneurial innovation of Chinese companies, contributing China’s part to global AI development.

By June 2024, China was home to over 4,500 AI companies, with its core AI industries nearing a scale of RMB 600bn (US$ 82.4m). In addition, the number of software developers has surpassed 9.4 million.

China has become the second fastest growing country in terms of the number of open-source AI participants. The innovative factors that promote the rapid advancement of China’s AI technology are gathering at an accelerated pace.

China has been building a broad stage for talents and participants of AI industry. In 2023, China’ s total investment in research and development (R&D) exceeded RMB 3.3 trillion (US$ 453.1bn), ranking second in the world. In the Global Innovation Index 2024 released by World Interllectual Property Organisation (WIPO), China’s ranking has risen to 11th place, making it one of the fastest-growing innovation-driven economies of the past decade.

The team behind DeepSeek is composed of highly skilled professionals with diverse academic backgrounds in AI, machine learning, and software engineering. More than 85% of the team members have Master’s degree, and more than 40% have Doctoral degree. Many of them are graduates or current students of top-tier universities in China, such as Tsinghua University and Peking University.

At present, approximately 500,000 college and graduate students majoring in Computer Science graduate from Chinese universities each year, including over 100,000 specialising in AI. Additionally, more than 200 Chinese universities now offer undergraduate programmes in AI. Fuelled by this growing pool of talent and educational innovation, China’s AI industry is thriving.

China is an active advocate and practitioner of AI global governance. In 2023, President Xi Jinping put forward the Global Initiative for AI Governance, which contributed China’s solutions and wisdom to one of the major questions of our time: how to address AI governance. China believes that the international community should work together to advocate the principle of AI for good, deepen cooperation on innovation, strengthen the inclusive development of AI for the benefit of all, improve global governance, and jointly build a community with a shared future for mankind.

China is also an advocate of inclusive AI. It has helped developing countries enhance capacity building, and strived to strengthen open-source AI technologies, ensuring greater accessibility to AI. That said, China is against any actions politicising trade and tech issues such as drawing lines along ideological difference and overstretching the concept of national security.

In the new round of sci-tech and industrial transformation, China insists on open and inclusive technological cooperation and is committed to providing more public goods to the international community.