China on cusp of seeing over 100 DeepSeeks, ex-top official says

China is on the brink of a major wave of artificial intelligence breakthroughs that could reshape its economy, according to Zhu Min, former deputy governor of the People’s Bank of China and ex-deputy managing director at the International Monetary Fund.

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Speaking at the World Economic Forum in Tianjin, Zhu forecasted more than 100 DeepSeek-like software innovations over the next 18 months. He emphasized that these developments could “fundamentally change the tech nature of the whole Chinese economy.”

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China's strengths—an immense talent pool of engineers, a vast consumer market, and favorable state policies—are converging to power its AI transformation. Zhu’s optimism highlights the intensifying tech race between China and the United States, as both nations seek supremacy in artificial intelligence amid broader trade tensions.

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DeepSeek, a powerful and cost-efficient AI model introduced earlier this year, shocked the global tech community and ignited a rally in Chinese tech stocks. The United States has responded by blocking China’s access to cutting-edge chips, such as Nvidia’s top-tier AI processors, while China is doubling down on domestic alternatives like Huawei.

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According to Bloomberg Economics, the high-tech sector accounted for approximately 15% of China’s GDP in 2024, up from 14% the year before. This figure is projected to surpass 18% by 2026.

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At the same forum, global leaders, including Singaporean Prime Minister Lawrence Wong and Vietnamese Prime Minister Pham Minh Chinh, joined discussions on economic challenges and policy paths. Chinese Premier Li Qiang is expected to address the summit’s opening session.

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Despite a temporary truce with the U.S. on tariffs, high duties remain, casting uncertainty over global trade. Zhu warned that ongoing tariff policy from the U.S. could lead to negative trade growth, investment slowdowns, and broader global repercussions. He also predicted that inflation in the U.S. may rise starting in August due to lagged effects from tariff increases.

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Meanwhile, Huang Yiping, a monetary policy committee member at China’s central bank, suggested that China's GDP likely exceeded 5% growth in Q2. However, he acknowledged that domestic consumption remains a key issue, urging policies to shift toward strengthening internal economic circulation rather than relying on exports.

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