The world is struggling with trade war. China, however, is focusing on AI to deal with the situation. Alibaba released a new open-source model for generating videos (Little Dragon Zhipu AI). DeepSeek has been widely deployed. The turmoil caused by tariffs will not knock off China’s AI development.

The AI sector is receiving government support. The Chinese President continues to meet tech executives. The government has set aside a fund of $8.2 billion for AI investment.

The Chinese population has embraced the technology with open arms. AI’s potential has been recognized by 83 per cent adults, as against 39 per cent in the US. They believe that AI will make the economy better. The exhuberance plays out beyond the corridors of tech companies. China intends to support high-tech industries.

The ban on the export of high-end chips could help the sector rather than hinder it in the long run.