Beyond DeepSeek: How China is Advancing in Tech—Despite Sanctions

AI: DeepSeek is Just the Beginning

By now, many of us have heard about DeepSeek, China’s homegrown AI model that’s rivaling the best despite being cut off from advanced chips.

But that’s just one part of the story.

---China now files more AI patents than any other country.

---Chinese researchers publish more quantum-related papers than any other country.

--- Some of China’s AI firms are developing models without access to cutting-edge GPUs, yet still competing with top US labs.

The success of DeepSeek, which trained on less powerful chips using innovative techniques, showcases China’s ability to push AI forward despite constraints.

If China can do this under sanctions, what happens if it achieves semiconductor independence?

EVs, Batteries & Solar: China’s Global Manufacturing Power

Beyond AI, China’s tech dominance is also hardware-driven—and nowhere is that more evident than in electric vehicles (EVs), batteries, and renewable energy.

• Batteries: China is now the world’s biggest battery maker, supplying a massive chunk of the world’s demand.
• Solar panels: China controls 80-95% of the global solar supply chain. By 2028, 60% of the world’s renewable energy will be generated in China.
• EVs: China has overtaken traditional automotive giants, selling more electric cars than any other country. BYD, Nio, and other Chinese brands are rapidly expanding globally.

While other nations invest billions to counter this dominance, China’s supply chain, scale, and speed make it hard to beat.

Drones, Quantum Computing & the Next Frontiers

The tech boom isn’t just happening on the roads and power grids—it’s also in the skies, labs, and deep science sectors.

• Drones: Next time you hear a drone buzzing overhead, there’s a 70% chance it’s a DJI drone made in Shenzhen. Three of the world’s top ten drone makers are Chinese.
• Quantum Computing: China now publishes more quantum research papers than any other country and has surpassed the US in some areas of quantum development.

From advanced robotics to next-gen telecommunications, China is pushing deeper into future-critical technologies.

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The Strategy Behind China’s Rise

This wasn’t luck—it was a long-term strategy. More specifically, 'Made in China 2025'.

When this national project was first introduced in 2015, it was an ambitious blueprint to transform China from the "world's factory" into a high-tech superpower.

It focused on 10 strategic industries, including AI, semiconductors, EVs, biotech, and quantum computing:

• More than 250 industry-specific goals were set.
• 86% of those targets have been met, with some—like EVs and renewables—far exceeding expectations.
• Over $1.5 trillion was allocated for research, development, and acquisitions. By 2020, $627 billion had already been spent.

But as China’s rapid tech progress triggered geopolitical pushback, the project name itself became a liability.

By 2018, it had drawn intense scrutiny from Western governments, especially the US, which saw it as a direct challenge to their technological dominance.

Realizing that the name had become politically sensitive, China stopped using it publicly in 2019. Instead, it quietly continued the strategy under broader, less controversial labels.

But the mission never changed. If anything, sanctions and restrictions accelerated China’s push for tech independence.

Sanctions & Restrictions: A Roadblock or a Catalyst?

In 2019, Huawei was a global leader in 5G and had a massive smartphone market share. But after the US blocked it from accessing key technologies, many expected Huawei to fade.

Instead, it pivoted.

?? Huawei invested in in-house chip development, launching a phone with an advanced microchip in 2023—far sooner than experts thought possible.

?? The same resilience can be seen in DeepSeek AI, which trained its AI model with older chips and new techniques, proving that China could innovate despite limitations.

The other sections include:

---Chip bans: The US imposed restrictions on China’s access to advanced semiconductors, limiting its ability to manufacture cutting-edge chips.

---IP concerns: The US and its allies have accused China of intellectual property theft—allegations China has consistently denied.

But instead of stopping China’s progress, sanctions have fueled its self-sufficiency drive. Further info.

Final Thoughts

China’s rise in AI and tech is undeniable, and so are the sanctions shaping its path forward.

The bigger question isn’t just whether restrictions will slow China down or accelerate self-reliance—but rather, what this global shift means for the future of innovation, competition, and collaboration.

At the end of the day, technological progress isn’t just about national competition—it’s about what it enables for society. As Geoffrey Hinton once said:

“In a sensibly organized society, if you improve productivity, there is room for everybody to benefit.”

A shared future, where advancements in AI, energy, and infrastructure create real-world benefits for more people, is something worth striving for. And perhaps, despite the complexities, that’s an outcome most of us would hope to see.

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