The launch of the Chinese AI start-up into the global AI race at the end of January has generated enthusiasm throughout the country, largely fueled by the government. President Xi Jinping has positioned himself as the leader of the country's technology industry.

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Chinese president Xi Jinping at a meeting on private enterprise in Beijing, Monday, February 17, 2025.

In the middle of the rice paddies of rural Guangxi, Binyang County is far from being the Silicon Valley of China. But that didn't stop the local secretary of the Chinese Communist Party (CCP) from setting high goals for his employees. "Today, I'm going to give you some instructions. Each of you must install at least two artificial intelligence (AI) applications," Liang Zhanfan told local officials on Wednesday, February 19. They were of course expected to download DeepSeek, as well as Doubao, the AI launched by TikTok's parent company, ByteDance. "If you can handle more, go ahead, but you need to master at least two," he added, predicting that AI would change everything within six months.

It's only been a month since January 20, when DeepSeek, a start-up founded by hedge fund manager Liang Wenfeng, unveiled an AI model trained at only a fraction of the cost incurred by OpenAI and other US leaders. When ChatGPT was launched in late 2022, it sent shockwaves through China, making the country realize how far ahead the US is in the technology race. But today, China is experiencing a "DeepSeek moment." This burst of enthusiasm comes at a critical time, as the central government looks for ways to restore confidence in a slowing economy, while households, worried about the future, are reluctant or unable to spend.

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