If you've purchased any digital product, from an iPhone to a drill, take a look at the back of the package: In the fine print, you'll likely spot the country of manufacture. You guessed it right—China. In recent years, it has become a formidable technological force, and one of the most prominent fields it now focuses on is artificial intelligence. The Chinese government, having realized that the future lies in advanced technologies, decided to invest billions of dollars in developing sophisticated AI models. The goal wasn’t just to compete with the West—but also to create a strategic advantage that would strengthen China’s global standing.
China's move into the AI field gained significant momentum primarily due to the growing tension with the United States, which reached new heights during the terms of Presidents Donald Trump and Joe Biden. Already under Trump’s administration, efforts were made to limit the penetration of Chinese technology into the U.S. market, the most notable example being the harsh threat against the TikTok app. Trump claimed that the Chinese company ByteDance, TikTok’s parent company, posed a security threat due to the potential transfer of American citizens’ data to Chinese authorities. When President Biden took office, tensions continued and even escalated with additional restrictions on Chinese companies such as Huawei, ZTE, and others. The Biden administration deepened the conflict by imposing bans and further limitations on the export of advanced chips to China—a move that significantly harmed Chinese tech firms.
This situation led to a natural response from China—a focus on developing and producing fully domestic advanced AI technologies. China’s aim was to stop relying on the West, particularly the U.S., and instead gain full technological independence. So far, China’s efforts have yielded significant success, giving rise to a host of advanced AI technologies that are already beginning to flood the global market.
“For historical reasons, China missed out on previous industrial revolutions and realized after its reform and opening-up in 1978 that science and technology are the engines of the economy,” explains Shi Shaoqi, better known to us as “Itzik the Chinese,” from the Hebrew Department of China’s International Radio, in an interview with Maariv Business. “Thanks to technological development, China has become a start-up nation, and in the current revolution led by AI, Chinese people also understand it’s worth investing in. We must not forget that China has nearly 1.5 billion people to feed. The enormous size of the market and its vast potential all drive innovation.”
According to Itzik the Chinese, the Chinese government itself places great importance on artificial intelligence, which has also led to investments in DeepSeek, a company increasingly challenging Western AI platforms. Is this a confrontation with Trump or merely a desire to dominate the tech world? “One cannot ignore that Trump started the trade war with China during his previous term,” says Itzik the Chinese. “We want to be independent and not dependent on anyone. But I’m sure that if the Americans change their anti stance, China—now a global superpower—would be happy to cooperate. We always say—the Earth is big enough; there’s room for everyone, both the U.S. and China.”
Which Chinese technologies are already taking over the digital market? Here are some of the most prominent:
DeepSeek: A Big Promise at Low Cost
One of the biggest surprises in the AI market came from Chinese start-up DeepSeek. Founded in May 2023 by Liang Wenfeng, manager of the Chinese hedge fund High-Flyer Quant, the company stunned the world by developing an advanced AI model with a relatively minimal investment of under $6 million. DeepSeek introduced a model called V3, released under an open-source license and offering top-tier performance. The model excels in code generation, solving complex mathematical problems, and advanced reasoning and inference, even outperforming many models from major Western tech companies. DeepSeek’s major advantage is that it does not require particularly expensive computing resources, making it more accessible to developers worldwide. However, there are still some limitations in processing Western languages and cultures, which the company is currently working to improve.
Alibaba: A Tech Giant with Global Aspirations
Alibaba, one of the world’s largest tech companies, hasn’t been left behind. You probably know it from the AliExpress shopping site, but it’s a digital empire that recently introduced its own AI model named Qwen 2.5 72B. The model is intended for diverse uses, including natural language processing, advanced data analysis, image recognition and generation, and integration with the company’s e-commerce systems. Its main advantage is its ability to perform a large number of tasks simultaneously at very high speed. However, this model requires significant computing resources, which could be a disadvantage for smaller companies. Alibaba released the model to the public at the end of 2023 and is expected to expand its reach significantly during the coming year.
Manus: Business Insights in One Click
Chinese company Manus, founded in 2022, presented an advanced data analysis model called Manus Insight. The model offers impressive capabilities in analyzing complex texts, detecting market trends, and generating real-time business recommendations. Manus primarily focuses on the Chinese market and offers a user-friendly interface. However, one notable drawback is its limited performance with Western languages compared to its excellent results in Chinese. The company plans to launch a more advanced model internationally by the end of 2025, aiming to bridge the language gap and expand its global usage.
Baidu: Leading Natural Language Processing in China
Baidu, the Chinese internet giant and popular search engine, has invested vast resources in recent years in developing AI models. Its latest model, ERNIE 4.0, showcases particularly advanced capabilities in natural language processing, including real-time translation, precise entity recognition, and highly efficient text summarization. The model is already available to the Chinese public and enjoys immense popularity, but like other Chinese models, it suffers from compatibility issues with Western languages—a matter the company is currently addressing to release an international version as early as next year.
Tencent: AI Enters the Medical World
Tencent, the company behind the WeChat app, hasn’t stayed out of the race and launched its medical AI model MedBot. The platform helps doctors in Chinese hospitals conduct preliminary diagnoses, suggest treatment plans, and monitor patients’ conditions in real time. The main benefit is saving valuable time for doctors. However, strict regulatory requirements significantly limit the model’s international use at this stage.
Huawei: An Advanced AI Model for the Automotive Industry
Huawei launched the HiAI model, integrated into the vehicle systems of Chinese car manufacturers. It offers advanced autonomous driving capabilities, obstacle detection, and smart vehicle management. Currently, the model is intended only for the local market, but Huawei plans to release it internationally by the end of 2025.
In the meantime, China continues to push forward, investing vast sums. Its new models have already begun infiltrating the global market—and the question that remains is how much China's artificial intelligence will succeed in shifting the global balance of power in the coming decades.