Timmy, an eight-year-old, sat with his head in his hands, murmuring to himself as he attempted to outsmart a robot equipped with artificial intelligence during a chess game.
However, this wasn’t some AI showcase or research facility – this robot was residing on a coffee table in a Beijing home, along with Timmy.
On the first night it arrived, Timmy embraced his small robot companion before going to bed. He hasn’t decided on a name for it – yet.
“It’s like having a little mentor or a little buddy,” the boy remarked, showing his mother the next chess move he was contemplating.
Just moments later, the robot chimed in: “Congratulations! You win.” Its wide eyes flickering on the screen, it began to reset the pieces for a new game and explained in Mandarin: “I’ve seen your skills, I’ll perform better next time.”
China is adopting AI in its quest to become a technological powerhouse by 2030.
DeepSeek, the groundbreaking Chinese chatbot that gained worldwide recognition in January, was merely the initial indication of that ambition.
Significant investments are being funneled into AI ventures seeking additional funding, intensifying domestic rivalry. Over 4,500 companies are engaged in developing and marketing AI, schools in Beijing are set to introduce AI classes for elementary and secondary students later this year, and universities have increased the number of spots available for students studying AI.
“This is an unavoidable trend. We will coexist with AI,” stated Timmy’s mother, Yan Xue. “Children should become familiar with it as early as possible. We shouldn’t turn away from it.”
She is eager for her son to learn both chess and the strategy board game Go – the robot excels in both, convincing her that its price of $800 was a reasonable investment. Its developers are already planning to add a language learning program.
This could be what the Chinese Communist Party envisioned when it announced in 2017 that AI would be “the primary driving force” behind the country’s advancement. President Xi Jinping is significantly investing in it, as a slowing Chinese economy faces the impacts of tariffs from its largest trading partner, the United States.
Beijing intends to inject 10 trillion Chinese yuan ($1.4 trillion; £1 trillion) over the next 15 years in its competition with Washington for an edge in advanced technology. AI funding received another boost at the government’s annual political assembly, currently taking place. This follows the establishment of a 60 billion yuan AI investment fund created in January, just days after the US further tightened restrictions on advanced chips and added more Chinese companies to a trade blacklist.
Yet, DeepSeek has demonstrated that Chinese firms can navigate these hurdles. This has astonished Silicon Valley and industry analysts – they did not anticipate China would catch up so quickly.
A competition among giants
This is a reaction Tommy Tang has grown used to throughout six months of promoting his company’s chess-playing robot at various events.
Timmy’s robot comes from the same company, SenseRobot, which provides a diverse range of capabilities – Chinese state media praised an advanced version in 2022 that defeated chess Grand Masters.
“Parents will inquire about the cost, followed by asking where I am based. They assume I should be from the US or Europe. They seem taken aback when I mention I’m from China,” Mr. Tang said, smiling. “There’s often a moment of silence when I reveal my origin.”
His company has sold over 100,000 robots and has secured a contract with a major US supermarket chain, Costco.
One factor contributing to China’s engineering achievements is its youth. In 2020, more than 3.5 million students in the country received degrees in science, technology, engineering, and mathematics, commonly referred to as STEM.
This number surpasses that of any other nation – and Beijing is eager to capitalize on it. “Strengthening education, science, and talent is a collective duty,” Xi told party leaders last week.
Since China opened its economy to the world in the late 1970s, it has “been through a process of accumulating talent and technology,” according to Abbott Lyu, vice-president of Shanghai-based Whalesbot, a company that produces AI toys. “In this AI era, we have a vast number of engineers who are dedicated.”
Behind him, a dinosaur constructed from colorful bricks springs to life, controlled via code assembled on a smartphone by a seven-year-old.
The company is working on toys designed to teach coding to children as young as three. Each set of bricks comes with a coding booklet. Kids can then select what they want to create and learn how to do it. The most affordable toy retails for approximately $40.
“While other nations also have AI education robots, Mr. Lyu asserts that China excels in competitiveness and smart hardware.”
“The success of DeepSeek has transformed its CEO, Liang Wenfeng, into a national icon and “is equivalent to 10 billion yuan worth of advertising for [China’s] AI sector,” he remarked.”
“It has raised public awareness that AI is more than just an idea; it truly can alter lives. It has sparked widespread interest.”
“Six domestic AI companies, including DeepSeek, have been dubbed China’s six little dragons online – the others being Unitree Robotics, Deep Robotics, BrainCo, Game Science, and Manycore Tech.”
“Some of these firms participated in a recent AI exhibition in Shanghai, where leading Chinese businesses showcased their innovations, ranging from search and rescue robots to a dog-like robot that performs backflips, roaming the halls among attendees.”
“In one lively exhibition area, two squads of humanoid robots faced off in a soccer match, dressed in red and blue uniforms. The robots stumbled when they collided – one even had to be carried off the field by a human handler on a stretcher, keeping the humor alive.”
“The excitement among developers post-DeepSeek was palpable. ‘DeepSeek signifies that the world acknowledges our presence,’ expressed Yu Jingji, a 26-year-old engineer.”
“However, as global awareness of China’s AI capabilities grows, there are also apprehensions about the insights the Chinese government might gain about its citizens through AI.”
“AI requires vast amounts of data – the more information it receives, the smarter it becomes, and with nearly a billion mobile users compared to just over 400 million in the U.S., Beijing holds a significant advantage.”
“Western nations, their allies, and many experts contend that data collected by Chinese applications like DeepSeek, RedNote, or TikTok might be accessible to the Chinese Communist Party. Some cite the National Intelligence Law as indicative of this.”
“Nonetheless, Chinese companies, including ByteDance, the parent company of TikTok, maintain that the law provides safeguards for private entities and personal information. Nonetheless, the concern that U.S. user data from TikTok could be accessible to the Chinese government triggered Washington’s decision to ban the app.”
“This same apprehension – where privacy issues converge with national security threats – is impacting DeepSeek. South Korea has prohibited new downloads of DeepSeek, while Taiwan and Australia have restricted its use on government-issued devices.”
“Chinese firms are mindful of these concerns, and Mr. Tang was swift to inform the BBC that ‘privacy is a non-negotiable aspect’ for his company. Beijing is also aware that addressing this will be a hurdle in its objective to lead globally in AI.”
“According to a commentary in the state-run Beijing Daily, ‘DeepSeek’s swift ascension has elicited negative responses from certain factions in the West,’ adding that ‘the development landscape for China’s AI models is still very unpredictable.'”
“Nonetheless, China’s AI companies remain undaunted. Instead, they believe that resourceful innovation will provide them a substantial edge – particularly since DeepSeek’s assertion that it could compete with ChatGPT at a fraction of the cost startled the AI sector.”
“Thus, the engineering task is figuring out how to produce more for less. ‘This was our Mission Impossible,’ stated Mr. Tang. His firm discovered that the robotic arm intended for moving chess pieces was prohibitively expensive, potentially raising the overall cost to around $40,000.”
“As a solution, they utilized AI to replicate engineers’ tasks and improve the manufacturing process. Mr. Tang claims this has lowered the expense to $1,000.”
“‘This is innovation,’ he remarks. ‘Artificial engineering is now embedded within the manufacturing process.'”
“This could lead to significant consequences as China implements AI on a large scale. State media already depict factories staffed with humanoid robots. In January, the government announced it would encourage the growth of AI-driven humanoid robots to assist with its rapidly aging demographic.”
“Xi has repeatedly emphasized ‘technological self-sufficiency’ as a crucial objective, indicating that China aims to develop its own advanced chips to mitigate the impact of U.S. export restrictions that could obstruct its ambitions.”
“The Chinese leader is acutely aware that he faces a lengthy journey – the Beijing Daily recently cautioned that the DeepSeek phenomenon should not give rise to ‘AI triumphalism’ because China remains in ‘catch-up mode.'”
“President Xi is heavily investing in artificial intelligence, robotics, and advanced technologies in preparation for a long race that he hopes will result in China’s eventual victory.”
