by Samantha Davis -
Published on 10 March 2025 00:00 GMT
China is renewing its support for the tech sector, with a particular emphasis on AI, aiming to stimulate business confidence and drive economic growth. This shift comes as the country grapples with meeting official growth targets amid a property sector crisis and sluggish consumption.
Local authorities across China have issued orders to promote AI tools like DeepSeek, which has revived investor hopes for broader AI adoption. The success of DeepSeek has ignited a race within the domestic industry to develop advanced chatbots, with Tencent's release of the Hunyuan Turbo S model being the latest contender.
Analysts at ANZ Research suggest that AI could help China overcome stagnation and deflation, addressing future labor shortages caused by a declining population. The revamped policy support for AI is expected to accelerate its adoption, potentially stabilizing the economy amid threats of a trade war with the US.
The AI push has led to intense competition among Chinese tech firms, with Tencent and others vying to develop cutting-edge AI models. This renewed focus on AI underscores China's commitment to leveraging technology to drive innovation and economic growth.