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How DeepSeek succeeded
Chinese AI models’ cost-effectiveness and transparency will empower more economies.
Chen Song
The Chinese artificial intelligence company DeepSeek recently launched its latest model, drawing significant global attention. DeepSeek is a Chinese technology firm specialising in advanced AI models. Its mission is to develop powerful tools capable of understanding and generating human-like language designed for complex tasks such as answering questions, writing articles and even coding. By leveraging deep learning techniques and vast datasets, DeepSeek aims to make AI useful in daily life and business application.
Within just two weeks of its launch, major internet platforms across the world rapidly integrated and deployed DeepSeek, leading to an unprecedented large-scale adoption of an open-source large language model among a billion-scale population. In a remarkable display of confidence, global tech giants like NVIDIA, Amazon and Microsoft announced a partnership with DeepSeek on the same day, demonstrating their endorsement through concrete actions. Microsoft officially confirmed that DeepSeek-R1 had passed its “rigourous testing and security evaluations”, while multiple European startups announced plans to migrate their products to the DeepSeek ecosystem.
The success of DeepSeek in the world stems from China’s enduring commitment to innovation. From the ancient Four Great Inventions to modern high-tech industries, China has consistently pursued scientific progress. The country has made technological innovation a central pillar of its high-quality development strategy, integrating it into its national policy. According to the “Global Innovation Index 2024 Report” released by the World Intellectual Property Organisation, China has been among the fastest-growing economies in innovation over the past decade. China’s total investment in scientific and technological research and development ranks second globally, and it has become the global “quadruple champion”, topping the list in terms of the number of international patent applications, the number of the world’s top 100 science and technology clusters, the total number of R&D personnel and the number of the most influential periodicals in various disciplines. China is achieving a transformation from “following” to “paralleling” and now “leading” in the field of scientific and technological innovation.
The success of China’s DeepSeek also benefits from the country’s institutional strengths and large-scale talent cultivation. In recent years, China has introduced and rigorously implemented policies such as the New Generation Artificial Intelligence Development Plan, the Three-Year Action Plan for Promoting the Development of the New Generation Artificial Intelligence Industry (2018-2020), and the Guidelines for Building a National Comprehensive Standardisation System for the AI Industry.
The “Eastern Data, Western Computing” project has optimised computing infrastructure distribution, while the national integrated computing power network is rapidly taking shape. By 2024, China’s computing power capacity is projected to grow by 18.5 percent compared to 2013, providing robust support for AI model training. Approximately 500,000 computer science technicians graduate from China’s higher education institutions annually, with over 100,000 specialising in AI (compared to about 30,000 in the US).
According to the report by a think tank affiliated with the Paulson Institute, Chinese talent accounts for nearly 50 percent of the world’s top-tier AI researchers, while the US contributes 18 percent. The innovative young team behind DeepSeek is predominantly composed of graduates from leading Chinese universities such as Tsinghua University, Peking University, Zhejiang University and Beijing University of Posts and Telecommunications.
China’s breakthrough in self-developed technologies has defied US technological containment, exemplified by DeepSeek’s development of high-performance, cost-efficient AI models on restricted chips, challenging American dominance in AI. From historic achievements like the “Two Bombs, One Satellite” programme, nuclear submarines, Shenzhou spacecraft, Tiangong space station, Beidou Navigation System and quantum communications to Huawei’s Kirin chips breaking through US technological barriers, these milestones prove that blockades and suppression cannot shackle China’s technological progress. Instead, they spur breakthroughs in critical “chokepoint technologies” through independent innovation.
Diverging from “small yard, high fence” strategy of the US, China’s DeepSeek has adopted an open-source approach, releasing core technologies for global developers to refine—demonstrating Chinese AI enterprises’ openness and commitment to building an inclusive innovation ecosystem. The cost-effectiveness and algorithmic transparency of Chinese AI models will empower more economies, driving a decentralised shift from monopolised technology to multilateral sharing, thereby dismantling the “winner-takes-all” paradigm.
Technological innovation serves as the core driving force for China’s economic transformation and high-quality development—a principle equally vital for Nepal. As China’s close neighbour, Nepal has recently introduced a series of policies to spur technological innovation and is drafting AI-related regulations. As Nepal’s long-standing friend and partner, China welcomes Nepal’s efforts to seize opportunities for technological leapfrogging through targeted policy design, breakthroughs in strategic sectors and international collaboration.
The China-Nepal Cross-border Optical Fiber Cable Project, a key component of the Digital Silk Road under the Belt and Road Initiative, has laid the robust infrastructure for Nepal’s digital transformation. This initiative not only enhances Nepal’s internet connectivity but also creates favourable conditions for building international interconnectivity platforms, attracting foreign investment and fostering technical cooperation—critical steps toward advancing a Nepal-specific DeepSeek-style digital ecosystem and innovation landscape.
China remains committed to deepening practical cooperation with Nepal, advancing high-quality Belt and Road cooperation and strengthening connectivity in ports, transportation, power grids and telecommunications. China will continue supporting Nepal’s socio-economic development within its capacity, jointly fostering regional prosperity through shared technological progress and inclusive growth.