CNBC’s The China Connection newsletter: A rival AI strategy

This report brings you insight and analysis from this week’s CNBC’s The China Connection bulletin about what directs the world’s second largest economy. As you can see? You can subscribe Here.

In the USA, companies and policy makers are chasing big investments. Openai warned that it will need it 115 billion dollars until 2029Washington made announcements that splashed in the domestic commitments of Apple and Meta, including billions of dollars.

On the contrary, Beijing spends less and focuses on practical use. At the beginning of the year, Beijing secretly launched 60.06 billion Yuan (8.42 billion dollars) national AI funds and has recently published sweeping plans to integrate technology throughout the economy and society.

Shan Zhiguang, Director of the State Information Center, a state -bound policy -based tank, told journalists on Tuesday, China’s “combining energy to do something big”.

Even if China is left behind in advanced chips, the country sees that Shan follows artificial general intelligence at a different way against the United States.

China’s plugs “can be used,” said Shahan and that’s enough. Controls the information and industrial development department.

Only this week announced government plans Integrate artificial intelligence into the power network and coal sector. Based on a wider plan published in August Introduce AI In the six priority fields, from industry to consumption and international cooperation.

So far, restrictions on the US access to China’s Nvidia’s best chips have not stopped the production of Deepseek and other local companies from producing competitive and often cheaper productive AI models.

“China’s approach to AI technology race is characterized by resourceness and adaptation,” S&P Global Ratings Director, S&P Global Ratings. He said. “Currently, while the advanced equipment is delayed, China uses important financial resources, talent pool and existing infrastructure to overcome these obstacles.”

Kurz expects China’s $ 8 billion AI Fund to focus on China’s AI chip production at the beginning, but the official details are still less.

According to the Chinese operating database Tianananancha, the main shareholder of the AI ​​Fund is the National Investment Fund of the Chinese Ministry of Finance, China Development Bank, Chinese Tobacco and various states.

“Like the Chinese version of the US White House ACI plan,” NYU Law Faculty Assistant Professor Winston Ma said. He said. “AI race continues.”

Regardless of or not through the AI ​​fund, state capital flows to Chinese initiatives.

For example, the humanoid start X Square Robot, state -supported giants CDB Capital and CAS investment, for him, counts among the supporters. The last investment tour according to the operation officer Yang Qian. The X Square Robot released an open -source AI model for robotics on Monday and announced an increase of approximately $ 100 million directed by Alibaba Cloud.

This is a previous story in China – a story in which government policy promotes and subsidies. In electric cars, it seems to work despite Beijing confessing More than 1 billion Yuan was wasted in corporate fraud.

China’s early semiconductor ambitions were not so successful. More than ten years ago, McKinsey pointed out that the Chinese government was the earliest Since the 1990s, attempts to build the chip industry “ Because financing plans and incentives were focused on more research and academy than the workplace. “

In 2014, another initiative for a national semiconductor policy was under the most ambitious goals, especially in high -level technological capabilities and full self -sufficiency.

Apparently, China’s technology investors and developers have come a long way since then.

Today, according to an Amcham Shanghai survey wrapped in late June, more than 40% of US companies in China are ahead of local competitors in the adoption of AI. The Chinese search engine giant Baidu announced the AI ​​vehicles for the elderly on Tuesday.

However, analysts warn about problems caused by excessive construction.

“Our focal point is that our focus is mostly caused by innovation on the algorithm, including AI progress (eg data centers), including AI chips and up flow supply chain (eg data centers),” our President Zerlin Zeng said.

“This has been proved for the success of Deepseek’s success in presenting a competitive basic model with limited access to advanced chips,” Zeng said. He said.

Before becoming Deepseek or Openai map, China AI ambitions in 2017 policyIt aims to become AI innovation center in the world until 2030.

The five -year jury is still about whether China will be successful. But the third time may be attraction.

Andy Rothman, the founder of Sinology, said there was an increasing sense of optimism about the Chinese economy.

Amcham Shanghai president shared how multinational companies can position themselves better to do business in China because of the indefinite determination of multinational companies.

John Ruttle, the chief investment strategist of Safanad, joined the “Fast Money” to talk about the leading exports of the United States and what is the leading exports for Chinese trade.

Exports to the United States decreases by 33%. Instead, China sells more to Southeast Asia and Europe, but the US Drag was still a general export of China last month It has grown slowly since February.

Old Chinese securities regulator probe. Yi huiman under investigationAuthorities said on Saturday. China Business News Site Caixin, referring to resources, this is a corruption investigation Probably the state bank is linked to ICBC.