China’s AI applications reshape global tech, defying US containment

Ding Gang

Apple is reportedly to reveal its latest iPhone SE4 on Wednesday. Expected to sell for roughly $499 in China (with government subsidies making it cheaper for some), the new device signals Apple’s effort to tap into the mid-range market without losing its signature premium appeal.

Why does the global tech application pattern increasingly revolve around China?

Let’s step back for a moment to see the bigger picture. Despite being an undeniable icon of Silicon Valley innovation, Apple owes much of its success to China. From the hardware that powers its products to the more than 5 million third-party app developers building the iOS ecosystem, China’s influence has been quietly but unequivocally reshaping global tech.

However, Apple isn’t the only one that relies on China. China is having a huge effect in shaping global technology trends as the world’s largest smartphone market and one of the few countries to fully embrace and deploy 5G at scale.

China doesn’t just consume technology, it builds, refines and scales it, ultimately leading to its application in ways that the rest of the world often strives to match. Furthermore, what’s happening in China right now is nothing short of a tech revolution – with AI as its crown jewel.

To understand why China plays such a unique role, you must first grasp the sheer scale of its tech ecosystem. With over 1.1 billion internet users, China is home to the world’s largest pool of smartphone users. Paired with an advanced 5G network ubiquitous in most urban areas, this environment is perfect for innovation, making China a force to be reckoned with in the global tech landscape.

Whether it’s online shopping, video streaming or mobile payments, these technologies thrive in China because they’re backed by millions – or even hundreds of millions – of daily users. But more importantly, this scale generates vast amounts of data, which fuels artificial intelligence, and China has an inexhaustible supply of data. Combine this with a rapidly growing pool of AI talent trained in some of the world’s best universities and hundreds of billions of dollars in research funding, and you start to see why China has become one of the leaders in the AI race.

One clear example of China’s AI leadership is the recent emergence of DeepSeek, a cutting-edge AI project poised to play a key role in what some call the “second digital revolution.” This revolution, characterized by the widespread integration of AI into various industries and daily life, is a testament to China’s pioneering role in shaping the future of technology. China is creating specialized models that solve specific medical, education, manufacturing and agriculture problems, demonstrating the practical and inspiring potential of AI in our daily lives. It’s not just about cutting-edge research papers or flashy demos. Currently, about 250 million Chinese people are deeply learning the operational techniques of AI applications and the intelligent tools produced.

Here’s where it gets interesting from an American perspective. Washington has been doubling down on policies to curb China’s tech ascendancy, with restrictions on semiconductor exports and limits on AI model access. These measures, aimed at limiting China’s access to key technological components and knowledge, reflect the growing concerns about China’s rapid technological advancement.

However, the truth is much of this effort feels like swimming upstream against a surging current. China’s ecosystem has reached a point where outright containment is no longer feasible. Its AI industry isn’t shaped by lone-star geniuses or serendipitous breakthroughs; it’s fueled by a collective national effort, a robust industrial base and a market hungry to try, adopt and refine new technologies, and last but not least, hundreds of millions of people are learning to apply AI. All this creates a larger market with more significant potential for companies like Apple that are developing its AI technology.

In a world increasingly driven by AI, competing with China isn’t just about building better tools or writing better algorithms. It’s about learning to develop better ecosystems that enable innovation to thrive in labs and the real world. And that’s where the future will be decided.

The author is a senior editor with the People’s Daily, and currently a senior fellow with the Chongyang Institute for Financial Studies at the Renmin University of China. dinggang@globaltimes.com.cn. Follow him on X @dinggangchina