China starts funds for AI and innovative industries
China starts funds for AI and innovative industries
Hong Kong-After the global success of the latest Ki moderation model of deepseek Economic officials promised to set up a state -funded fund to support technological innovations.
new fund for technological innovations
The "State Risk Palace Center" will focus on future -oriented areas such as artificial intelligence, quantum technology and hydrogen storage technology, said Zheng Shanjie, head of the Chinese economic planning office, on Thursday on the sidelines of the annual meetings of the National People's Congress and the political advisory Congress China.
The funds are to attract capital of local governments and the private sector in the next 20 years, Zheng, the chairman of the National Commission for Development and Reform.
technological progress and challenges
Chinese managers consider high -performance chips, quantum computing, robotics and AI to be crucial for economic growth and modernization of production. At the same time, however, China is facing increasing pressure through technological restrictions from the USA.
Zheng commented combative at the press conference and praised China's rapid development in the areas of microchips, large-scale AI models as well as industrial and humanoid robots. "Scenes that were once only seen in science fiction films are now becoming a reality. We are constantly moving to the global front lines of technology and innovation," said Zheng. "This proves that the tests of certain forces to oppress and block our efforts to enable independent innovation only accelerate," he added in an obvious allusion to the United States.
deepseek and its successes
Deepseek, a privately managed company, whose r1 language model In January the global stock markets in January shaken, could almost achieve the skills of his competitors-including Openais GPT-4, Metas Llama and Google's Gemini, but to a fraction of the costs.
This surprised observers because the United States has been working for years to restrict the supply of powerful AI chips to China, citing security concerns. This means that Deepseek allegedly achieved its inexpensive model with relatively undersized AI chips.
focus on inner refreshment
After China prioritized technology -oriented innovations for strengthening domestic demand for years, the country's managers have started to show more commitment to strengthening consumption as the top political task. The Chinese government will soon present a "special action plan to boost consumption," said Zheng, the economic officer.
Last year, despite a Economic program in September China's commercial surplus on a record value from under 1 trillion USD. This strength has attracted the resentment of US President Donald Trump, who doubled the US import duties to Chinese goods to 20 % this week.
economic growth and private companies
In 2023,China's household consumption was just 39 % of the gross domestic product (GDP), according to the Macquarie Group, an investment bank. For comparison: South Korea is 49 %, Japan 55 %, and the United States is 68 %.
"Beijing is determined to find strength from inside in the middle of increasing external uncertainties. China starts special promotions to promote domestic consumption," write the HSBC economists led by Jing Liu in a research note.
In the context of these efforts, China increased its budget deficit to around 4 % of GDP, Premier Li announced in his work report. This has been the highest value for decades and part of a plan to increase the expenditure and to cushion the effects of the US tariffs.Promotion of private economy
He also signals that the quota for the emission of government bonds by more than 25 % compared to the previous year should be increased to 6.2 trillion yuan ($ 855 billion), the funds between local and central authorities being divided. Special bonds issued by local governments are to be used for infrastructure investments and to support the struck real estate market, while the central authorities would provide around 300 billion yuan ($ 41 billion) for consumption subsidies, including a popular "scrackling premiums" program for cars and electrical appliances.
A crucial success factor for the government will be whether it is able to arouse the “animal spirits” of the private entrepreneurs of China, who have to advance technological innovations, while Beijing is preparing for further restrictions from the USA.
Last month China Guide XI Jinping of the country where he explained that it was "the main time" for private companies to "exploit their full potential".
private companies contribute more than 60 % to GDP China and over 80 % for employment, although they are exceeded in size by the state sector. However, many companies, especially in the technology sector, are still recovering from a strict pressure to regulate the regulation.
The law to promote private economy, which is to be discussed during the current political sessions, the "two sessions", would ensure that companies are legally supported and protected, says Yang Decai, director of the Research Institute for Private Economy at the Nanjing University and a member of an advisory committee of the legislative organ. "It reacts very quickly and effectively to some of the topics that affect the private sector, such as the protection of property rights and fair competition," he said on Tuesday in front of journalists in the large hall of the people in Beijing. "This has strengthened the trust of private companies and our expectations for the market, which is of great importance for the stable growth of the Chinese economy."
Reporting of CNNS Hassan Tayir and Fred He.
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