With his head in his hands, eight-year-old Timmy quietly strategized as he faced off against an AI-powered chess robot in his Beijing living room. This wasn’t a lab or tech exhibit — the robot sat right on the family’s coffee table, part of Timmy’s daily life. On its first night home, Timmy embraced the robot like a new friend, though he still hadn’t chosen a name for it.
“It feels like both a mentor and a playmate,” he said, demonstrating his next chess move to his mother. Moments later, the robot congratulated him in Mandarin, its digital eyes blinking cheerfully. “You win! I’ll challenge you more next time,” it said, resetting the chessboard for another round.
China is eagerly adopting artificial intelligence in its pursuit of becoming a global tech leader by 2030. The AI chatbot DeepSeek, which gained worldwide attention in January, was just the beginning of this ambitious journey. Investment is surging into AI startups, intensifying domestic competition. Currently, over 4,500 companies in China are dedicated to AI development and sales, and this year, Beijing’s schools will start introducing AI education for primary and secondary students, while universities have expanded enrollment for AI-related studies.
“This is the direction we’re headed. AI is here to stay,” said Timmy’s mother, Yan Xue. “Children should start learning about it as early as possible.” She’s eager for her son to master both chess and the strategy game Go, and the robot’s capabilities convinced her the $800 purchase was worthwhile. Its developers even plan to add a language learning feature soon.
This widespread AI push aligns with the Chinese Communist Party’s 2017 declaration that AI would be a key driver of national progress. Now, as China faces economic challenges and trade tensions with the United States, President Xi Jinping is doubling down on technology investments. Over the next 15 years, Beijing plans to invest 10 trillion yuan (approximately $1.4 trillion) in technology, with AI receiving significant boosts, including a recent 60 billion yuan fund launched just after new U.S. restrictions on advanced chip exports.
Yet, Chinese innovation is finding ways to circumvent these hurdles. DeepSeek’s success surprised industry leaders in Silicon Valley, who hadn’t anticipated China’s rapid advancement in AI development.
The Dragon Race in AI
Tommy Tang, who markets the chess-playing robot, is used to astonished reactions at exhibitions. “Parents often assume I’m from the U.S. or Europe,” he said with a smile. “When I tell them I’m from China, there’s always a moment of surprise.” His company, SenseRobot, has sold over 100,000 units and secured a contract with major U.S. retailer Costco.
One reason behind China’s AI rise is its talent pool. In 2020 alone, over 3.5 million students graduated in STEM fields — more than any other country. "Since opening up in the late 1970s, China has been steadily building expertise and technology," said Abbott Lyu, vice president of Shanghai-based Whalesbot, a company specializing in AI-based educational toys. Nearby, a dinosaur assembled from colorful bricks roared to life, controlled by code written on a smartphone by a seven-year-old child.
Whalesbot designs toys to teach coding to children as young as three, with each toy set including coding guides. The most affordable products cost around $40. "Other countries are producing AI educational toys too, but when it comes to intelligent hardware and competitiveness, China leads the way," Lyu said. DeepSeek's CEO Liang Wenfeng has become a national icon, with his company’s success serving as a major publicity boost for China’s AI sector.
Online communities now refer to six leading domestic AI companies as China’s “six little dragons”: DeepSeek, Unitree Robotics, Deep Robotics, BrainCo, Game Science, and Manycore Tech. These firms showcased their innovations at a recent AI exhibition in Shanghai, featuring search-and-rescue robots and even dog-like robots performing acrobatic flips among excited crowds. In one lively demonstration, humanoid robots dressed in red and blue competed in a soccer match, complete with staged injuries and playful human handlers.
Following DeepSeek’s breakthrough, there’s a sense of momentum among Chinese engineers. "DeepSeek announced our arrival to the world," said Yu Jingji, a 26-year-old AI engineer.
Challenges and Privacy Concerns
However, China’s rapid AI progress has raised concerns about privacy and data security. AI thrives on vast amounts of data, and with China’s billion-plus mobile users — more than double the U.S. — it has an advantage in data collection. Western countries fear that data gathered through Chinese apps like DeepSeek, RedNote, or TikTok could be accessed by the government, pointing to China’s National Intelligence Law as justification.
Despite reassurances from companies like ByteDance that private data remains protected, concerns persist. This led to restrictions on DeepSeek, with South Korea banning new downloads and Taiwan and Australia barring it from government devices. Mr. Tang stressed that “privacy is a non-negotiable priority” for his company, and Beijing acknowledges that public trust and international scrutiny will be challenges on its path to AI leadership.
Affordable Innovation as the Key
Cost-effective innovation is becoming China’s strength. Tang’s company initially faced high production costs — robotic arms used for chess pieces alone pushed prices up to $40,000. By using AI to refine design and manufacturing, they reduced that cost to just $1,000. “This is real innovation,” Tang said. “AI is now part of the manufacturing process itself.”
China’s large-scale application of AI could reshape industries. State media already feature factories staffed by humanoid robots, and the government has announced plans to promote AI robots to help care for an ageing population.
President Xi’s vision of “technological self-sufficiency” aims for domestic chip production, reducing dependence on foreign technology in light of U.S. restrictions. The race is far from over. While DeepSeek’s success is celebrated, state media cautions that China remains in a “catch-up phase.”
Yet, with significant investment and strategic focus, China is preparing for a long marathon in AI — one that it fully intends to win.
Source: BBC News