DeepSeek, TikTok, Temu: How China is taking the lead in tech - BBC World Service

Summary

Highlights

• Chinese AI and tech apps like TikTok and Temu are leading in innovation 🌟
• 'Made in China 2025' has largely succeeded in transforming China's tech industry 🇨🇳
• China excels in renewable energy with dominance in solar and battery production ☀️🔋
• US sanctions challenge Chinese companies but often lead to new innovations 💥
• China's presence in advanced tech fields is ever-growing, pushing global competition 🌎

Key Takeaways

• China is rising as a tech leader, dominating sectors like AI, drones, and electric vehicles 🚀
• The 'Made in China 2025' plan has been a central force in China's tech advancements 📈
• Despite setbacks, China continues to innovate, as seen with the AI chatbot DeepSeek 🤖
• Chinese apps like TikTok, Shein, and Temu are making waves globally 🌊
• China faces challenges in chipmaking but remains a key player in other tech sectors 💾

Overview

Chapters

• 00:00 - 00:30: Introduction to China's Tech Ascendancy The chapter discusses the increasing global presence and influence of Chinese technology companies. It highlights how Chinese AI chatbot DeepSeek has gained international attention and is part of a broader trend of Chinese apps, such as TikTok, CapCut, Shien, and Temu, rising in popularity worldwide. Additionally, the chapter notes that China's influence extends beyond mobile apps, as the country leads in automobile production, particularly in the electric vehicle sector with companies like BYD surpassing traditional automotive hubs.
• 00:30 - 01:00: China's Dominance in Batteries and Solar Panels The chapter discusses China's substantial influence and dominance in the global supply chain for batteries and solar panels, responsible for 80-95% of it. China's position as a major player is further emphasized with a prediction that by 2028, 60% of the world's renewable energy will be generated in China. Furthermore, the chapter mentions China's significant presence in the drone industry, suggesting a 70% likelihood that a drone overhead is manufactured by China.
• 01:00 - 01:30: China's Leadership in Drones and Quantum Computing The chapter discusses China's dominance in the fields of drones and quantum computing. It highlights that three of the world's top ten drone manufacturers are based in China, specifically mentioning DJI from Shenzhen. In quantum computing, Chinese scientists lead the world in publishing research papers, surpassing the US in certain areas of development. Additionally, in AI, Chinese firms are noted for issuing more patents than any other country, underscoring their leadership in these advanced technological sectors.
• 01:30 - 02:00: Made in China 2025 Initiative This chapter discusses the 'Made in China 2025' initiative, which is a strategic plan implemented by the Chinese government in 2015. The aim of this initiative is to transition China from being a manufacturer of low-cost goods to becoming a global technology leader. Part of this involves developing its own supply chains and advancing the nation's capabilities in cutting-edge technology. The chapter also mentions the rise of DeepSeek, illustrating China's potential to compete with leading US technology companies.
• 02:00 - 02:30: Progress and Success of Made in China 2025 Made in China 2025 has been largely successful, with China catching up or leading in several industries such as EV cars, 5G, batteries, solar energies, and AI. The plan outlined over 250 goals across ten target technologies.
• 02:30 - 03:30: Strategies for Achieving Tech Dominance The chapter discusses strategies for achieving technological dominance, focusing on China's Made in China 2025 plan. It begins with an analysis from the South China Morning Post, noting that 86% of the targets have been met, particularly in sectors like electric vehicles and renewable energy, which have even exceeded expectations. While the South China Morning Post is often critiqued for being pro-China, the success of Made in China 2025 is acknowledged by numerous analysts. The chapter explores how China has managed to achieve this level of success, suggesting that some view China's efforts as incredibly successful.
• 03:30 - 04:00: US and Global Reactions to China's Tech Growth China's state-backed capitalism involves the government setting research and funding agendas.
• 04:00 - 05:00: Huawei's Adaptation Post-Sanctions The chapter discusses the Chinese government's strategy to overcome technology sanctions through significant investments in research and development. By 2020, more than US$ 627 billion of the planned US$ 1.5 trillion had been spent, with research hubs emerging in major cities focused on various technologies. The narrative notes allegations by the US and its allies that China has been involved in intellectual property theft to bolster its tech advancements.
• 05:00 - 06:00: DeepSeek's Innovation with Limited Resources The chapter titled 'DeepSeek's Innovation with Limited Resources' discusses China's strategic response to external pressures and sanctions, particularly in the technology sector. Initially, the 'Made in China 2025' program was designed to boost China's domestic innovation and technological capabilities, but its success led to increased tensions with Western countries, resulting in restrictions and sanctions. The chapter highlights how these external threats have motivated China to innovate despite limited resources and external challenges.
• 06:00 - 07:00: TikTok's Success and Challenges The chapter "TikTok's Success and Challenges" delves into the difficulties faced by Huawei, a leading Chinese technology company, due to international sanctions. It specifically highlights the impact of US-led sanctions in 2019 on Huawei's dominance in the 5G market and mobile phone industry, driven by security concerns over potential espionage. Despite these challenges, the chapter reflects on the resilience and adaptability of Chinese companies, epitomized by Huawei's strategy of self-sufficiency and the age-old Chinese adage that 'Life always finds its own way out.' This reflects the broader theme of navigating geopolitical tensions and sustaining technological advancements amidst global scrutiny.
• 07:00 - 08:00: Challenges in China's Chipmaking Industry The chapter explores the challenges faced by China's chipmaking industry, focusing on how companies like Huawei adapted to restrictions on microchip procurement. Huawei, unable to obtain essential microchips for innovation, transitioned into manufacturing its own chips. By 2023, they released an advanced phone with a microchip that exceeded global expectations. A parallel case is noted with a chatbot company, DeepSeek, which also overcame chip shortages by utilizing older chips and developing new methods.
• 08:00 - 09:00: US and Global Counteractions The chapter titled 'US and Global Counteractions' discusses the challenges faced by the US due to impressive technological advancements and competition from China. It highlights the development of DeepSeek, an AI technology from a Chinese company, which serves as a wake-up call for US industries to improve competitiveness. Additionally, it mentions TikTok's success as a non-US social network that has caught the West by surprise, bringing it under scrutiny for potential US government intervention due to national security concerns.

DeepSeek, TikTok, Temu: How China is taking the lead in tech - BBC World Service Transcription

• 00:00 - 00:30 The rise of Chinese AI chatbot DeepSeek has taken the world by storm. But it’s part of a wider trend: Chinese apps are rising up the charts around the world. TikTok, CapCut, Shien, Temu – to name a few. And it's not just on our phones. China is becoming dominant in many other areas of tech. Look at cars. It's overtaken the previous epicenters of motoring, selling more than any other country thanks to hit electric car makers like BYD.
• 00:30 - 01:00 A lot of the success comes from China being the world’s biggest battery maker now too. And solar panels. China is responsible for an estimated 80‑95% of the global supply chain. By 2028 it’s predicted that 60% of the world’s renewable energy will be generated in China. In drones too China rules the skies. Next time you hear that buzzing above your head, there's a 70% chance
• 01:00 - 01:30 it's a DJI drone made in the city of Shenzhen. Three of the world's top ten drone makers are Chinese. In the futuristic world of quantum computers, Chinese scientists publish more quantum-related research papers annually than any other country. And they're even ahead of the general leaders, the US, in some areas of quantum computing development. And it's the same picture in AI. Chinese AI firms now issue more patents than any other country.
• 01:30 - 02:00 And the rise of DeepSeek shows it's capable of challenging the dominant US giants with products too. So how has China done all this? Well, it's all part of a long term plan. in 2015, the Chinese government set out an ambitious project called Made in China 2025. It wanted to move away from being the world's factory for low cost goods, to a global tech leader responsible for its own supply chain of cutting edge tech.
• 02:00 - 02:30 Made in China 2025 in my opinion was largely very successful. So in many industries China is catching up with the leading edge, and in some industries China is even leading. Ev Cars, 5G, Batteries, Solar Energies. Now, even in the AI, Gen AI, China has become one of the players. Across ten target technologies the plan set out more than 250 mini goals.
• 02:30 - 03:00 And according to analysis from South China Morning Post, 86% of them have been ticked off. Some targets, like electric vehicles and renewable energy production, have far exceeded the targets. South China Morning Post is sometimes accused of being pro-China, but Made in China 2025 has been hailed a success by many other analysts too. So how has China done it? What China has been moderately successful, and some would say incredibly successful at doing,
• 03:00 - 03:30 is using it’s sort of state backed capitalism system, where by the governmnet really sets a research agenda, sets a funding agenda. Bringing foreign researchers and enticing them to stay in China, or at least to give their innovations and ideas over to Chinese companies. Requiring businesses from outside of China oftentimes to set up joint ventures with Chinese ventures. These are all sort of tools that China has used to help achieve these ambitions.
• 03:30 - 04:00 According to US Congress research, the Chinese government planned to raise or spend US$ 1.5 trillion on grants for research, development or buying foreign companies. According to the report, more than US$ 627 billion had been spent by 2020. Research centers sprung up in city hubs centered around various technologies. Also, the US and its allies have accused China of shortcutting some of its tech innovation by stealing intellectual property through hacking.
• 04:00 - 04:30 For example, US aircraft makers. China has always denied this. Made in China 2025 got so successful that after just a few years the government stopped using the term, as it was antagonizing rivals. But it was too late. Over the years, the West have imposed restrictions and sanctions on China regarding sensitive technologies. This huge external threat has wakened up the Chinese
• 04:30 - 05:00 and kind of forced them to pursue a self-sufficiency strategy in this advanced technology. There's an old saying in China: “Life always finds its own way out”. Huawei is a great example of this. In around 2019 it was top of the world in 5G equipment. It had a huge market share in mobile phones too. All of that took a major hit, though, when the US led widespread sanctions against the company, citing national security concerns around spying.
• 05:00 - 05:30 Huawei's market share shrank and it couldn't get the microchips it needed to keep innovating. But it pivoted into microchip manufacturing and is now a major player in that too. In 2023, it released a phone with a microchip far beyond what the rest of the world thought was possible for the company or the country. A similar situation happened with the viral new chatbot DeepSeek. The firm says it couldn't get the most powerful chips to train its models, so it says it made do with older ones and innovated new techniques.
• 05:30 - 06:00 They built the impressive bot so far less money with far less kit. For the US it came as a shock. DeepSeek, AI from a Chinese company should be a wake up call for our industries that we need to be laser-focused and competing to win. TikTok too has taken the West by surprise. It's the first non-US social network to succeed in the last ten years. Its enormous success is under the spotlight, though, and under threat from potential intervention by the US on national security grounds.
• 06:00 - 06:30 But Shein and Teemu are proving worthy challengers in e-commerce now too., thanks to combining China's cheap goods with innovative app technology. But China hasn't succeeded in all its 2025 goals. It's still years behind other countries in chipmaking, with progress set to get even worse thanks to more sanctions and controls. Plus, the US government and private firms are throwing hundreds of billions of dollars into staying ahead in chip tech. This increased research and development funding is going to ensure
• 06:30 - 07:00 the United States leads the world in the industries of the future. And in January, the US celebrated a commitment from tech giants to invest a potential US$ 500 billion into infrastructure for AI. And it's all taking place right here in America. Other industrialised countries like Germany and Japan have also launched counter plans too. But there’s no doubt a new high tech leader has emerged with big ambitions, deep pockets and plenty of patience.