Tianjin, June 25 (Bloomberg) – China could witness more than 100 artificial intelligence advancements comparable to DeepSeek within the next year and a half, according to Zhu Min, former deputy governor of the People’s Bank of China (PBOC).
Speaking at the World Economic Forum’s Annual Meeting of the New Champions in Tianjin, the ex-central banker highlighted China’s unique competitive advantages in fostering transformative technologies that could redefine the nation’s economic structure.
“These new AI innovations will fundamentally reshape both the technological and economic landscape of China,” Zhu told attendees at the forum known as “Summer Davos.”
The former IMF deputy managing director pointed to China’s deep pool of engineering talent, massive domestic market, and strong government backing as key drivers behind the coming wave of AI breakthroughs. His comments come amid intensifying U.S.-China technological competition and ongoing American restrictions on semiconductor exports.
Market Impact and Economic Implications
The surprise emergence of DeepSeek’s powerful yet cost-efficient AI model earlier this year sent shockwaves through global tech circles and sparked a rally in Chinese tech stocks. Analysts suggest this demonstrates China’s ability to innovate despite U.S. export controls on advanced chips.
According to Bloomberg Economics, high-tech industries now contribute about 15% to China’s GDP, up from 14% in 2023, with projections suggesting this could exceed 18% by 2026.
Trade Tensions and Economic Outlook
While China and the U.S. agreed to a tariff truce last month, existing duties remain in place. Zhu warned that trade policy uncertainty could negatively impact global commerce, noting: “The entire trade industrial chain has begun to slow, with investment stalling – making the overall effect greater than the tariff rates themselves.”
The former central banker also predicted U.S. inflation may resurge in August as pre-tariff inventories deplete.
Domestic Economic Indicators
Huang Yiping, a member of the PBOC’s monetary policy committee speaking at the same forum, suggested China’s Q2 GDP growth likely exceeded 5%, citing strong April-May data and early June indicators. However, he acknowledged persistent weakness in domestic demand, emphasizing the need to strengthen “domestic circulation” amid global market uncertainties.
The Tianjin forum has drawn global leaders including Chinese Premier Li Qiang and Singaporean Prime Minister Lawrence Wong, with discussions focused on navigating economic challenges through technological innovation.
Note: This article synthesizes information from Bloomberg reports while maintaining journalistic objectivity and avoiding speculative claims about unverified technological developments.