Departing from a policy from trying to speak with a unique voice and not being derivative, I prefer to publish a view that is similar to my own but has been already published, is highly informative, and is eloquently expressed.

The secret sauce of Chinese industrial success
Smart state planning plus ferocious market competition
Hua Bin, May 23

The planning function is carried out by the China State Planning and Development Commission, which assembles the best minds in the government, academia, think tanks, and industries and goes through multi-year research, studies, and survey to understand and predict key technological trends and future market demand. Then they iterate and socialize the plans until there is broad buy-in.

Once top-line state planning priorities are set, central government empowers local governments to implement the policies. At the implementation level, fierce market competition becomes the norm.

Local governments compete with each other. Each local government is powerfully incentivized to create local tech and industrial champions as career advancements are typically tied in with achievements of national priorities.

Local governments unleash suites of policy support measures to attract and help businesses succeed, including

• Preferential tax
• Land use priority
• Preferential bank loans, even venture capital financing from government agencies (e.g. Shanghai and Shenzhen each has multi-billion dollar semiconductor funds)

Other policy support even extends to

• Establishing educational programs at universities to train and develop scientific and technical talents specifically for identified industries and technologies (e.g. AI, robotics, hypersonics, rare earth mining and refining, rail, ship building, etc.)
• Rolling out talent acquisition programs to provide housing, allowances, and compensation equalization schemes to attract talents to move to their cities. Some governments even provide WeWork type of office facilities to startups for free.
• investing in infrastructure upgrades including 5G coverage, EV charging stations, high speed rail, ports, bridges, etc. to enable smooth operation of large industrial enterprises.
• Investing in local parts and components supply chains that can be plugged into specific manufacturing sectors.
• Promoting successful technical leaders and executives in critical industries into senior government positions (e.g. the head of AVIC, the leading aeronautic business in China, was promoted to become a provincial governor)

The central government went so far as to crack down on monopolistic consumer tech companies such as Alibaba and Tencent in 2019 as these companies were consuming too much financial and talent resources and preventing startups from emerging. The main goal of the crackdown was to redirect resources (funding, talent) to more productive directions such as AI and hard tech.

As a result, in the key technological and industrial hubs across China, from Shanghai, Shenzhen, Wuhan, Chengdu to Hefei and Changsa, you will find hundreds of EV companies, solar energy companies, AI and robotics startups, ship builders, and drone companies that are developing innovative technologies, building production capacity, and engage in intense competition for consumers.

In the competition, there are private businesses, state owned enterprises, and foreign companies as well. All have to compete for customers on price and quality and operate with razor thin margin. Innovation and cost efficiency are prized in the never-ending loop of hyper competition.

The Chinese industrial and technological ecosystem is often described by insiders as “arena for gladiators”. In a survival of the fittest environment, the winners of such competitions emerge as world class champions.

The same model is replicated in industry after industry from EV, smart phones, solar energy, robotics, ship building, AI large language models, drones, chip making, and biopharmaceuticals.

Many people mistakenly assume the Chinese state planning model means the government picks the winners and losers. That cannot be further from the truth. State planners pick the priority industries, define the swim lane, provide policy incentives, and then market takes over to decide the winner.

In contrast, the US industrial policy is more guilty of government picking winners – just witness how both Biden and Trump surround themselves with senior executives of incumbent tech giants when they announce policies such as the Chips Act, Inflation Reduction Act, or the Stargate program. Almost by definition, the main beneficiaries of these industrial policies will be the companies in the room. Market competition doesn’t seem to play the same decisive rule as in China.

As China accelerates the third mixed-economy phase of its industrial development, we can expect to see more Chinese companies will innovate faster, scale in the largest single market in the world, and become world-class competitors in their industries. Profit margins will be kept low as competition will never rest. However, more consumer surplus will accrue to customers, leading to improvement of living standards for all.

Hua Bin details the advances in China’s economy and describes why those advances will continue and cannot stall ─ the government apparatus plans ahead, outlines alternative directions to roadblocks, and facilitates shifts in production, enabling government industry to step in when private initiative falters. No matter how the U.S. contends China, the PRC will find a way to deter the contention and, in the end, the U.S. will lose, and lose until, as a last resort….

This content originally appeared on Dissident Voice and was authored by Dan Lieberman.

The fact is, China’s AI companies’ “embrace of open source” has not only paved new paths for their own growth but has also spurred demand for cross-border AI collaborations among enterprises. It is driving the global AI ecosystem to transform toward “open-source inclusivity.”

By offering some of its models for free, DeepSeek has ensured that the digital dividends of the AI era are shared equitably among all internet users. This decentralized, open-source strategy stands in stark contrast to the closed ecosystems, high resource barriers, and monopolization by a few players that have characterized AI technology in Western countries. It aligns with the global process of technological democratization. Silicon Valley venture capitalist Marc Andreessen wrote on social media platform X that as open-source, DeepSeek R1 is “a profound gift to the world.”

In recent years, China has been actively developing multiple national-level AI open innovation platforms, providing open access and shared computing resources. It can be said that the success of “open-source” large models is deeply rooted in the rich soil of “open source.” We observe that the development of AI technology follows a spiral progression of “open source-innovation-iteration,” a logic that also underpins global technological and economic development.

Today, from DeepSeek’s open-source ecosystem to Baidu’s Apollo autonomous driving open platform, from cost reduction and efficiency improvement in the pharmaceutical industry to collaborative innovation among multinational enterprises, these practices collectively illustrate a fundamental truth: The future of AI belongs to openness and sharing. Open source and inclusivity can certainly become a model for collaborative win-win scenarios in the global AI field, empowering and promoting sustainable development in the era of intelligence.

On February 12, The Conversation, a news website based in Australia, published an article stating that Chinese enterprises’ embrace of open-source AI “promises to reshape the AI landscape almost overnight.” The key drivers behind China’s rise in AI, in addition to being “fast” and “collaborative,” also include being “market-driven.” Thanks to China’s robust industrial supply chain, AI technology is being implemented at an astonishing pace. This is evident in the recent wave of adoption sparked by DeepSeek in China: Over a dozen local cloud-based AI chip manufacturers have announced compatibility or launched DeepSeek model services, several cloud computing giants have pledged support for DeepSeek, and industries such as telecommunications, automotive, brokerage, and education are rapidly integrating DeepSeek. This signifies that AI will play a leading role in driving the development of new quality productive forces, acting as a catalyst for broader innovation and overall economic quality improvement in China. It will also create new opportunities and possibilities for international cooperation.

At the recent Paris AI Action Summit, representatives from over 60 signatories, including China, jointly released a document titled “Statement on Inclusive and Sustainable Artificial Intelligence for People and the Planet.” Notably, only the representatives from the US and the UK did not sign. This indicates that the self-centered, exclusive and hegemonic logic of AI development has little market appeal internationally, while China’s advocated concept of open, inclusive, mutually beneficial and equal AI governance is recognized and accepted by the vast majority of global members.

Isolating oneself to pursue development without an environment for communication and competition risks being replaced by entirely new pathways, regardless of how high computational power is amassed. Only through open collaboration can we address global issues such as the distribution of computational power and the establishment of ethical standards. Attempting to maintain a competitive advantage in the AI era by digging “moats” is akin to dreaming, let alone opening the “interstellar gate.”

Moreover, closing the door on China means losing opportunities for exchanges involving advanced technologies. Some media outlets have pointed out that American companies’ further utilization of China’s open-source technology potential may be constrained by domestic political barriers.

Currently, the global development of AI is at a crossroads. Should we continue to rely on the hegemony of computing power to build technological barriers, or should we strive for common prosperity through inclusive cooperation? China’s answer is to promote innovation through open-source initiatives and seek development through inclusivity. As China integrates into the global technology network with a humble and open attitude, the world becomes more vibrant due to the convergence of diverse forces. The future of AI development may be defined by “symbiosis in competition.” The dawn of technological equality is beginning to emerge, and China looks forward to joining hands with the world to create a more inclusive era of intelligence.

This content originally appeared on Dissident Voice and was authored by Global Times.

• More US sanctions against Chinese chip industry
• China tightens graphite export controls
• Industrial renaissance in northeast China
• China approves GM soybeans and corn

This content originally appeared on Dissident Voice and was authored by Dongsheng News.

• Alibaba Cloud will broadcast 2024 Olympics
• Taiwanese leader’s popularity slumps
• World’s largest hydro-solar power plant
• Village basketball and football championships

This content originally appeared on Dissident Voice and was authored by Dongsheng News.

Immediately after being elected House speaker, Rep. Kevin McCarthy vowed to hold Beijing accountable. “We will create a bipartisan select committee on China to investigate how to bring back the hundreds of thousands of jobs that went to China, and then we will win this economic competition,” the California Republican said early Saturday morning after a dramatic 15-vote series that elected him to lead the GOP majority in the lower chamber.

On Tuesday, the House of Representatives made good on McCarthy’s promise, voting 365 to 65 to establish the House Select Committee on China, which will be chaired by foreign policy hawk Rep. Mike Gallagher, R-Wis. “Here’s the good news: There is bipartisan consensus that the era of trusting Communist China is over,” gloated McCarthy from the House floor.

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This content originally appeared on The Intercept and was authored by Pablo Manriquez.