China is investing over $1 trillion to surpass the US in advanced technology. Artificial intelligence (AI) plays a central role in this plan. From a robot defeating a child in a Beijing apartment to AI-powered tools in different industries, China is moving fast. The government supports these efforts, aiming for AI to drive economic growth by 2030. Despite challenges like data privacy concerns and geopolitical issues, Beijing is determined to succeed.
China’s Commitment to AI
China’s AI push is getting global attention. In January 2025, China launched DeepSeek, a new AI chatbot. This was a big step forward. With more money flowing into AI companies, competition is rising. China now has over 4,500 AI firms, and schools are offering AI courses. As a result, Beijing is positioning itself as a global leader in AI.
According to Yan Xue, mother of an eight-year-old named Timmy, AI is now part of daily life. “Children should learn it early,” she said. Timmy’s $800 robot companion teaches him chess, helping him prepare for the future.
In 2017, China declared AI a key part of national development. President Xi Jinping has strongly supported this, especially during economic slowdowns and US trade restrictions.
The Investment Behind AI Progress
China is spending 10 trillion yuan ($1.4 trillion) over 15 years on AI and other technologies. This is part of its plan to stay ahead in the global tech race, especially against the US. In early 2025, China launched a 60-billion-yuan AI fund. This came after the US tightened export controls on advanced chips and banned some Chinese firms. Still, China’s AI sector continues to grow.
“DeepSeek’s success proves that Chinese companies can compete globally,” said an AI industry expert. Many in the West did not expect China to make such rapid progress. However, the rise of AI companies like DeepSeek, which competes with ChatGPT, is changing opinions.
China’s Edge: Talent and Innovation
One of China’s biggest strengths is its talent. In 2020, China produced over 3.5 million STEM graduates—more than any other country. Beijing is focusing on developing this talent further. Xi Jinping has stressed the need for education and innovation.
Companies like SenseRobot, which created Timmy’s chess-playing robot, are using this talent. “People are surprised when they learn we are based in China,” said SenseRobot’s CEO, Tommy Tang. His company has sold over 100,000 robots and recently partnered with Costco, a major US retailer.
At Whalesbot, a Shanghai-based AI toy company, children as young as three are learning coding. Their affordable toys help kids build and program robots. “China excels in smart hardware and competition,” said Abbott Lyu, Whalesbot’s vice president.
China’s “Little Dragons” and AI Innovation
The rise of Chinese AI firms has led to the “six little dragons,” a group of leading AI companies like DeepSeek and Unitree Robotics. These firms are making headlines at events such as the Shanghai AI fair. Attendees have seen rescue robots and dog-like robots performing backflips.
Although progress is rapid, challenges remain. Data privacy and surveillance concerns are major issues, especially as Chinese firms expand globally. China’s massive number of mobile users gives AI companies an edge in data collection. However, this has led to restrictions in countries like the US and South Korea, which fear data sharing with the Chinese government.
Privacy Concerns and Global Competition
AI relies on vast amounts of data. With over a billion mobile users, China’s AI firms have access to extensive data. However, concerns remain. The US and other nations have taken steps to limit Chinese apps on government devices.
Chinese firms insist they follow privacy laws. “Privacy is a red line,” said Tommy Tang. To compete globally, companies must build trust. Many firms are focusing on cost-effective AI solutions. For example, SenseRobot reduced the cost of robotic arms from $40,000 to just $1,000, showing AI’s potential in manufacturing.
China’s Long-Term Vision
AI is already helping China address major challenges, such as an aging population. President Xi is pushing for technological self-reliance, reducing dependence on foreign tech, particularly in chip production. While experts warn against overconfidence, China is making steady progress toward becoming a global AI leader.