China doubles down on AI and tech innovation as Trump ratchets up trade pressure
Published On Mar 5, 2025, 6:43 PM
China is ramping up its investments in AI and technology to counteract trade pressures from the U.S. as highlighted during the recent National People's Congress. Premier Li Qiang's government is focusing on expanding AI applications and supporting innovative tech firms. Despite trade tensions, China aims to promote its tech development and enhance its private sector by signaling a shift towards encouraging rather than restricting tech companies. Major initiatives will include investments in AI, biomanufacturing, and quantum technology, along with efforts to improve self-reliance in technology despite external challenges.
Stock Forecasts
BABA
Positive
Given China's commitment to investing in technology and AI, especially with support for startups like DeepSeek, firms in this sector could see positive momentum. The Chinese government's shift toward supporting the private tech sector indicates a favorable environment for growth in innovation-driven companies.
Related News
China's DeepSeek claims theoretical cost-profit ratio of 545% per day
Mar 1, 2025, 7:40 AM
Chinese AI startup DeepSeek on Saturday disclosed some cost and revenue data related to its hit V3 and R1 models, claiming a theoretical cost-profit ratio of up to 545% per day, though it cautioned that actual revenue would be significantly lower. This marks the first time the Hangzhou-based company has revealed any information about its profit margins from less computationally intensive "inference" tasks, the stage after training that involves trained AI models making predictions or performing tasks, such as through chatbots. The revelation could further rattle AI stocks outside China that plunged in January after web and app chatbots powered by its R1 and V3 models surged in popularity worldwide.
Alibaba plans to spend $53 billion on AI in a major pivot
Feb 24, 2025, 2:19 AM
(Bloomberg) -- Alibaba Group Holding Ltd. pledged to invest more than 380 billion yuan ($53 billion) on AI infrastructure such as data centers over the next three years, a major commitment that underscores the e-commerce pioneer’s ambitions of becoming a leader in artificial intelligence.Most Read from BloombergTrump Targets $128 Billion California High-Speed Rail ProjectTrump Asserts Power Over NYC, Proclaims ‘Long Live the King’Trump to Halt NY Congestion Pricing by Terminating ApprovalAirbnb
Is Xi’s Sudden Embrace of Business for Real? China Is Left Guessing.
Feb 22, 2025, 12:00 AM
The uncertain reaction to Xi Jinping’s display of warmth made sense: Executives are eager for a reset after years in the cold but ever wary of meddling.