Chinese president Xi Jinping used his New Year’s address to declare that 2025 marked a year of major breakthroughs for China’s Artificial Intelligence and semiconductor industries, positioning these advances as central to the country’s technological trajectory. He said that Chinese technology firms had made significant progress in Artificial Intelligence models and domestic chip development, signalling an acceleration of efforts to reduce reliance on foreign hardware and software while climbing the value chain in strategic technologies.
The article highlights the rise of DeepSeek as a focal point of China’s Artificial Intelligence momentum in 2025. China’s Artificial Intelligence sector gained global attention with the rise of DeepSeek, and the company launched advanced models focused on reasoning and efficiency that drew comparisons with leading United States systems and triggered volatility in global technology markets. Other major Chinese firms also moved aggressively, with Alibaba releasing new frontier models and pledging large-scale investment in cloud and Artificial Intelligence infrastructure, while Huawei announced new computing technologies and Artificial Intelligence chips designed to challenge dominant suppliers in the global semiconductor and compute ecosystem.
These developments produced varied reactions abroad and are feeding into China’s strategic planning for the coming years. China’s progress prompted mixed international responses, as some European governments restricted the use of Chinese Artificial Intelligence models over data security concerns, while United States companies continued engaging with Chinese linked Artificial Intelligence firms through acquisitions and partnerships. Looking ahead to 2026, China is expected to prioritise Artificial Intelligence and semiconductors in its next five year development plan, and analysts anticipate increased research funding, expanded infrastructure, and stronger support for emerging technology industries as Beijing seeks to consolidate its gains and deepen its role in global digital competition.
