DeepSeek, China’s “dark horse” in the artificial intelligence race, is being hailed as a game-changer; its rise seen as a monumental leap for China’s AI industry. This is the general sentiment across Chinese online discussions, where many view the launch of DeepSeek R1 as a serious shake-up that casts doubt on the US tech dominance.
Investors are increasingly questioning whether the substantial investments and rising costs of American firms such as OpenAI and Nvidia will continue to yield returns.
The numbers back these claims. According to Chinese estimates, DeepSeek’s downloads surged by 375 per cent during 20-26 January, reaching over 3 million since its launch on 11 January. About 80 per cent of this growth has occurred in the past week. On 26 January, the app topped the Apple App Store and daily active users jumped by 110 per cent on 17 and 18 January.
China celebrates DeepSeek
Liu Wei, director of the Human-Computer Interaction and Cognitive Engineering Laboratory at Beijing University of Posts and Telecommunications, emphasised that DeepSeek’s primary strength lies in its algorithm improvements and optimisations. A Shanghai-based commentator credited the AI model’s popularity to its ability to perform complex tasks at lower computing costs, paired with clever engineering design.
It is no surprise that Chinese media and social media platforms are overflowing with articles discussing the implications of DeepSeek for both China’s AI industry and its competition with the US.
One social media commentator wrote, “Tomorrow marks the beginning of the Chinese New Year. As the nation enters a long holiday and embraces a period of relative calm, the US, on the other side of the globe, seems anxious. In stark contrast, the realm of artificial intelligence has suddenly experienced a significant disruption. The force behind this upheaval is none other than DeepSeek, a product of China’s burgeoning AI sector.”
Commentators in China view DeepSeek as a direct challenge to US AI supremacy. Shen Yi, Associate Professor at Fudan University’s Department of International Politics, said that DeepSeek’s emergence could disrupt both Chinese and American tech industries by shifting market dynamics, which is critical for the advancement of AI technology.
Qian Yaxu, a lecturer at Southwest Jiaotong University, asserted that AI will be the deciding factor in the China-US competition, in which China stands a strong chance of prevailing. Since AI has traditionally been a domain of US superiority, China’s strides in the field may undermine Washington’s confidence.
Liu Dian from Fudan University commented, “DeepSeek is not merely challenging the established rules; it is fundamentally rewriting the game.” In doing so, the platform opens new avenues for China’s AI industry, propelling its ascent in the global market.
According to Liu, the diminishing dominance of the US in AI technology, coupled with shifts in the capital market, signals the dawn of a new world order. This shift represents more than just a technological revolution—it is a recalibration of global power dynamics, heralding the beginning of a transformative era in AI.
The industry’s perspective in China mirrors these sentiments. Zhou Zhimin, manager at Chuangjin Hexin Technology Growth Fund, said that DeepSeek’s popularity has alleviated domestic concerns and boosted confidence while fuelling panic among major US companies. Sun Jiaxu, fund manager at Cathay Internet+, emphasised that DeepSeek’s rise positions China as a global leader in AI.
In Chinese discourse, DeepSeek’s emergence is seen as proof of China’s formidable AI strength, especially after the US tech export restrictions to China, which triggered fierce competition.
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Censorship still looms large
While DeepSeek’s rise has fuelled national pride and confidence in China’s tech sector, it is not without controversy. The company has recently limited registrations to Chinese phone numbers only, citing a large-scale cyberattack on the platform.
On Weibo, hashtags like “DeepSeek was violently cracked by US IP attack”, “DeepSeek’s Apple download list in the US surpasses ChatGPT”, and “Americans are anxious” are trending.
A Weibo user remarked, “The United States is desperate. If it can’t prevail, it resorts to underhanded tactics—just like Donald Trump, who, when faced with defeat, simply raises tariffs.”
Additionally, DeepSeek has come under scrutiny for censorship practices. Many non-Chinese users have reported that sensitive topics—such as Taiwan, Tiananmen Square, and China’s territorial disputes—are being suppressed on the platform. This highlights the extent to which Chinese technology companies are subject to government control, raising concerns about the use of AI as a tool for political censorship and surveillance.
Despite the overwhelmingly positive Chinese discourse surrounding DeepSeek—particularly with the Spring Festival, an auspicious occasion in China—there has been limited acknowledgement of the platform’s censorship practices and the risks tied to its widespread use. Censorship is not only embedded within DeepSeek but also extends to discussions of its limitations on Chinese platforms. If left unchecked, AI could become a potent tool for China to shape both its domestic narrative and its influence on the global stage.
The race for AI supremacy is no longer just about technological innovation, but about control. It’s about who leads AI and how data safety norms will be reshaped accordingly. As the China-US rivalry shifts from a potential battleground conflict to an AI tech race, the stakes are incredibly high. The narrowing gap in AI power raises a critical question: At what cost is technological dominance being pursued?
Sana Hashmi is a fellow at the Taiwan-Asia Exchange Foundation. She tweets @sanahashmi1. Views are personal.
(Edited by Prasanna Bachchhav)
Deep seek breakthrough, typically, in India will be called out for various faults, gaps, unethics and so on. But it cannot be denied that what deepseek has been able to achieve is democratisation of hithertofore monopoly of American tech giants. Its affordability does more benefit to humanity. Strategic thinkers in India need to talk more about the positive lessons brought about that may benefit us- as against deriding deepseek as nothing more than a sasta chinese maal.
Deepseek must make it clear to the jingoistic Indians how far behind we are, compared to the Chinese, in technology and engineering.
The Hindutvawadis are itching for a chance to claim that AI and ML were mentioned in the Vedas or Upanishads or Puranas and our ancestors were masters of these technologies.