One year on from DeepSeek’s breakthrough, Chinese AI is still hot on the heels of US tech. Despite hardware constraints, China looks set to remain close to the frontier of AI development. And China has advantages that mean that economy-wide adoption could happen faster than in any other large country. While that may not translate into a proportional productivity boost, China will challenge the US as a global leader in AI, with AI ecosystems becoming a new faultline in global fracturing.
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