TLDRs;
- China’s AI and computing sector sees renewed confidence from government policy support and local chip innovations.
- DeepSeek’s V3.1 AI model boosts domestic AI adoption, powering growth in chips, servers, and solutions.
- Beijing targets 70% adoption of intelligent devices and AI agents in research, industry, and consumer markets by 2027.
- Local AI hardware firms, including Cambricon and Thunder Software, report strong revenue and stock gains.
China’s tech industry has warmly welcomed the government’s latest artificial intelligence strategy, which aims to expand the use of AI across research, industry, and consumer sectors.
Market analysts believe this initiative will significantly strengthen the confidence of local chip manufacturers, server suppliers, and AI solution providers, signaling a robust growth phase for the domestic AI ecosystem.
The strategy includes ambitious targets, such as achieving a 70% adoption rate of intelligent devices and AI agents by 2027. Analysts say that this level of policy support is expected to accelerate AI deployment across multiple sectors, reinforcing China’s position as a leading player in the global AI market.
DeepSeek Model Fuels Momentum
A major catalyst behind the industry’s optimism is the launch of DeepSeek’s V3.1 AI model, which has been specifically designed to operate efficiently with domestic hardware.
The model is credited with amplifying confidence in local computing capabilities, driving adoption among enterprises, research institutions, and consumer-facing applications.
Kaiyuan Securities highlighted in a recent research note that “China’s AI ecosystem will prosper faster with both policy and technological advancements,” emphasizing the synergy between government guidance and local innovation.
Domestic Hardware Sees Strong Gains
Local semiconductor and AI hardware companies are already benefiting from this strategic push. Chinese GPU maker Cambricon Technologies, for instance, saw its stock climb 3.2% after reporting a remarkable 4,348% revenue surge in the first half of the year.
Thunder Software Technology gained 11.7%, while Zhongji Innolight rose 3.5%. In Hong Kong, SenseTime Group increased 8.9% and 4Paradigm shares rose 5.8%.
Ping An Securities analysts note that industries supporting computing infrastructure are “poised to benefit significantly,” with semiconductor manufacturers expected to see the most pronounced growth as the core enabler of AI technology.
Confidence Spurs Sector Expansion
With the government’s AI plan in place, China’s technology sector is witnessing renewed investor confidence. Analysts point out that combining strategic policy backing with advances like DeepSeek V3.1 will accelerate the growth of domestic AI solutions, server infrastructure, and chips.
The policy’s dual focus on research and industrial adoption aims to stimulate innovation while ensuring that local companies capture a significant share of the AI market. By 2027, China hopes to have at least 70% of enterprises and consumers integrating AI-enabled devices and agents, creating a comprehensive ecosystem driven by domestic technology.
Industry observers see this as a critical period for China’s AI landscape, where policy, innovation, and market dynamics converge to shape the future of computing and artificial intelligence.
