Government Support Drives Confidence in China’s AI and Computing Sector

China’s AI and computing sector is experiencing a surge in confidence, fueled by strong government policy support and breakthroughs in local chip innovations. The launch of DeepSeek’s V3.1 AI model, optimized for domestic hardware, has further accelerated adoption across chips, servers, and AI solutions.

Beijing has set ambitious targets, aiming for 70% adoption of intelligent devices and AI agents in research, industry, and consumer markets by 2027. This level of policy commitment is expected to solidify China’s position as a global leader in AI development.

Local firms like Cambricon and Thunder Software are already seeing the benefits, reporting robust revenue growth and stock performance. Market analysts interpret this as the beginning of a sustained expansion phase for China’s AI ecosystem.