Info Malang Raya Its All About World News
AI as a Catalyst for China’s Modernization
Artificial intelligence (AI) is increasingly seen as a crucial factor in driving China’s modernization, with several major financial institutions expressing confidence in the technology’s potential to reshape the country’s economy. Investors and analysts believe that AI will not only help sustain growth but also enhance business efficiency across various industries.
Morgan Stanley, UBS, and other leading investment firms have highlighted the transformative impact of AI on Chinese companies. According to these experts, the integration of AI into business models could lead to significant improvements in productivity and profitability. Companies such as Meituan and Xiaomi are expected to benefit from this trend, as they explore new ways to leverage AI in their operations.
The breakthrough of DeepSeek in generative AI technology has sparked renewed interest in China’s tech sector. This development has led investors to look beyond traditional players like Alibaba Group Holding and Tencent Holdings, seeking out new opportunities in the rapidly evolving AI landscape. DeepSeek’s rise has also reignited discussions about China’s potential to lead in global AI despite restrictions imposed by the United States on technology exports.
China Asset Management, one of the largest mutual-fund firms in mainland China, has noted that AI adoption in the country is currently at around 5 percent. However, it predicts that this figure is poised for explosive growth, similar to the expansion of personal computers in the 1980s. Analyst Yao Pei from Huachuang Securities emphasized that AI is likely to become a key driver of China’s modernization, with widespread applications across multiple sectors, including electronics, computing, and media.
The focus on efficiency rather than raw computing power is a distinguishing feature of China’s approach to AI. Unlike the United States, which has an advantage in AI infrastructure, China emphasizes revenue generation through AI-enabled services and cost savings achieved via high productivity. This strategy is expected to create a more competitive AI landscape, prompting companies like ByteDance, Tencent, and Alibaba to adjust their pricing strategies and integrate AI more deeply into their operations.
According to Kate Lakin, director of research at Putnam Investments, the global AI infrastructure market was valued at $35.4 billion in 2023 and is projected to grow at a compound annual rate of 30 percent from 2024 to 2030. However, she warned that short-term disruptions could arise from changes in U.S. policy on tech exports to China and ongoing tariff developments.
UBS’ global wealth-management unit has also expressed optimism about the long-term trends in AI, stating that the technology will continue to drive growth in the tech industry. The firm noted that the impact of U.S. tech curbs on large-cap Chinese tech stocks would be limited, suggesting that the sector remains resilient despite external challenges.
China Galaxy Securities highlighted the role of AI in overcoming the “middle-income trap” and reshaping the global economic landscape. The firm stated that the new quality productive forces represented by AI would become a core driver of economic transformation.
As AI continues to evolve, its influence on China’s economy is expected to expand further. From e-commerce and travel agencies to electric vehicle manufacturers and household appliances, a wide range of industries stand to benefit from the integration of AI technologies. With continued investment and innovation, China is well-positioned to harness the power of AI for sustained economic growth and modernization.
