Xi Jinping: 2025 was a year of AI and chip breakthroughs amid US-China tech rivalry

Chinese President Xi Jinping highlighted significant technological advancements in China, especially in artificial intelligence and semiconductor chips, denoting 2025 as a year of great achievements.
Chinese companies, including DeepSeek, Alibaba, and Huawei launched several advanced AI models and developed competing semiconductor technologies.
DeepSeek launched the R1 model in January, which showed remarkable performance and impacted American tech stocks negatively. Later, it released the DeepSeek-V3.2 model, boasting reduced computing costs and enhanced efficiency.
Alibaba introduced two frontier AI models, Qwen2.5-Max and Qwen3-Max, which were claimed to outperform other leading AI models in various tests.
China’s tech advancements have sparked controversy; some European countries banned the use of DeepSeek models due to data security issues.
The U.S. and China competed over semiconductor access, culminating in a deal allowing certain Chinese customers access to select Huawei chips.
China plans to focus on AI, quantum technology, and brain-computer interfaces in its upcoming five-year plan for 2026-2030. Increased investment in basic research and strategic emerging industries is anticipated.
The AI chip market in China is expected to grow significantly, with significant investments in AI infrastructure, potentially exceeding the combined global market by the end of the decade.

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