‘Two sessions’ 2024: China’s top advisory body told AI gap with US is widening

“In a certain sense, as new developments in AI emerge exponentially, if no decisive and groundbreaking measures are taken, we are at risk of seeing an even wider gap,” he said.

“Problems in the development of information technology cannot be solved by creating applicable scenarios, nor through breakthroughs in specific technologies … it is not even a problem about talent and basic research,” Zeng said.

“It is about many things from all aspects, we are all very anxious.”

China at a crossroads ahead of Two Sessions 2020 - SCMP Series

Zeng leads a company that develops national cyber and information security technology, chip research and design, semiconductor equipment, advanced manufacturing processes, and operating systems.

China has relied heavily for its technology development on US chip imports and other crucial Western equipment. But US sanctions have constricted Chinese access to key tools such as advanced graphics processing units from Nvidia, the world’s leading AI chip designer, which had up to 90 per cent of market share in China’s AI chip market.

Now, both state-owned and private companies are under pressure to ramp up the country’s domestic technology development.

While China’s AI industry was generally seen as more competitive in the varied tech rivalry between the two countries, the latest launch of OpenAI’s Sora and ChatGPT has raised questions about China’s progress in catching up with the US.

Risks ahead but China’s economy to stay on long-term, tech-led course

To cope, Chinese tech companies, which have insisted that chip restrictions would not affect AI their development in the short term, have relied on their existing inventories, or have turned to domestic AI chip makers.

But after Sora was launched last month, the State Council’s State-owned Assets Supervision and Administration Commission, which manages companies like Zeng’s, urged firms under direct control of the central government to “embrace the profound changes brought about by AI”.

In terms of global computing power, including intelligent computing power from AI chips, China ranks second at 33 per cent after the US at 34 per cent, and ahead of Europe and Japan, at 17 per cent and 4 per cent respectively, according to the China Academy of Information and Communications Technology.

As China’s economy undergoes ‘structural upgrade’, tech becomes a top priority

Leading Chinese tech firms, such as Huawei Technologies and ZTE, have invested heavily in the research and development of AI chips.
The Post has reported that Huawei, in particular, was identified as a potential rival in AI chips, after its new AI chipset – Huawei Ascend 910B – was made available via distributor channels on the mainland.
The tech giant surprised the market last August with the launch of its first 5G smartphone, the Mate 60 Pro, following US sanctions.