deepseek

 As the new year unfolds,MK sport emerging Chinese tech startups like DeepSeek are making waves, and the excitement surrounding the startups continues to build. 

Meanwhile, the rise of the so-called "six little dragons" in Hangzhou, East China's Zhejiang Province, has sparked national discussions on the future of tech research and development (R&D) investment in the country.

At the new year's "first meetings" held by provincial governments across the country after the Spring Festival holiday concluded on February 4, artificial intelligence (AI), innovation, talent, and the new quality productive force were among the top buzzwords on social media.

For example, Shanghai is focusing on the development of high-end industries, focusing on the construction of an innovation AI hub, and fostering strategic emerging industries and future industries such as the low-altitude economy, large aircraft, and new energy vehicles (NEVs) in the city. 

In Zhejiang, the goal is to add 300 new "little tech giants" specialized in cutting-edge technologies by 2025, along with 5,000 newly recognized high-tech enterprises.

The tech boom at the start of 2025 underscores the progress that China has made in recent years across a wide range of technological fronts. The progress spans fields such as AI, 5G, NEV, and biotechnology, among others. 

It is largely driven by the Chinese government's strong focus on technological innovation and continued investment, as well as rising demand from businesses and consumers for tech-driven solutions. 

Together, the ramped-up efforts by both the government and the market have sparked a new wave of technological transformation, leading to the current tech boom. Chinese tech companies are starting to emerge on the global stage on masse, shifting from being mere buyers of technology to becoming innovators and technology leaders on the world stage.

Driven by the surging innovations, investment in the tech sector will continue to increase in 2025, which may surpass market expectations. 

Also, the active involvement of private capital, including the growth of venture capital and angel investments, is set to inject fresh impetus into the high-tech industry. 

Private companies have long played a key role in driving technological progress. They are often the primary force behind innovation, adapting swiftly to market demands and evolving business environments accordingly. 

Driven by market competition and the pursuit for profitability, private enterprises tend to be more proactive in exploring and investing in new technologies. The government supports their innovation by always creating a favorable policy environment, including tax incentives and the support of technology innovation funds. 

This system of government-business collaboration helps accelerate the transformation of technological breakthroughs into tangible productivity, fueling high-quality economic growth.

Hangzhou, for instance, has long prioritized the development of private enterprises. The deep mutual trust between the government, private companies, and private capital has created a thriving business environment there, providing strong support for the growth of private tech firms.

As a result, more than 570 Chinese industrial companies are among the world's top 2,500 R&D spenders, accounting for nearly a quarter of the total, China's Vice Minister of Industry and Information Technology Zhang Yunming, said in January at a press conference.

Nationwide, China's total spending on R&D saw steady growth in 2024, exceeding 3.6 trillion yuan ($496 billion), according to data released by the National Bureau of Statistics.

Since the 18th National Congress of the Communist Party of China in 2012, the country's R&D expenditure has surged, surpassing 1 trillion yuan in 2012, 2 trillion yuan in 2019, 3 trillion yuan in 2022, and over 3.6 trillion yuan last year. This incessant increase in R&D spending has effectively stimulated innovation and creativity, significantly contributing to high-quality growth.

The continued growth in R&D spending underscores China's paying unprecedented attention to technological innovation and the country's strong commitment to achieving high-level technological self-reliance.

In recent years, some Western countries, led by the US, have intensified their efforts to suppress and stymie China's technology sector, but to no avail. 

The success of many emerging tech companies like DeepSeek tells an important lesson that developing core technologies indigenously and independently is essential for the future growth of China.

And, it necessitates greater investment in both basic and applied researches, along with efforts to nurture and attract top talent, strengthen intellectual property protection, and explore new models of international cooperation. These measures have been proved to be the key to reducing reliance on external technologies and enhancing China's capability for independent innovation. 

The author is a member of the Expert Committee for Telecommunication Economy, Ministry of Industry and Information Technology. [email protected]