China's innovation seen as key to AI boom

China's capability in innovation, especially in key areas such as artificial intelligence, is going to shock those who try to block it, and benefit those who work with it, says Jack Perry, chairman of the 48 Group, a London-based organization dedicated to promoting Sino-British economic cooperation.

Commenting on the detailed discussions on AI during the just concluded two sessions, the annual meetings of China's National People's Congress and the National Committee of the Chinese People's Political Consultative Conference, Perry said he wasn't surprised by the rapid breakthroughs made by companies in China, including the Hangzhou-based tech startup DeepSeek, whose AI model launched in January rivals the capabilities of models developed by leading US company OpenAI.

"DeepSeek shocked everybody. It did not shock me. If you try to limit China, they will go over you in those areas," Perry said, pointing to the United States government's export control of semiconductor manufacturing equipment and chips to China.

"That's naivety and ignorance," he said. "It wants to slow China's efforts in AI, but actually it forced China to accelerate."

"China's capability of innovation, and cultivating tomorrow's leaders in key areas is beyond anyone else," said Perry, citing the rapid increase in computer science degree students in China over the past decade.

According to a report by China Internet Network Information Center last year, there were more than 4,500 AI-related companies registered in the country by 2024, constituting a relatively comprehensive AI industry ecosystem.

"I think in the next two years, people will see more DeepSeek situations where people will be shocked in the West if they're not working with China," he said.

Perry noted the AI Plus initiative being mentioned in this year's Government Work Report, which said the government will encourage combining digital technologies with China's manufacturing and market strengths more effectively.

Echoing the initiative, Perry said he thinks though AI is now seen as a sector in itself, it is going to be a platform where every sector will be built on AI. "It is going to be a foundation of every sector of today and tomorrow," he said.

Perry said in the past four years the 48 Group has been looking into the best expertise in AI, and will hold an expo in Beijing themed on AI Plus in October — focusing on healthcare and renewable energy.

"We will bring experts and large business delegations to explore and showcase what AI can do to those sectors," he said, adding that the United Kingdom has a significant presence in AI technology.

The UK is home to the British-US AI research laboratory Google DeepMind, which made headlines in 2016 after its AlphaGo program beat a human Go world champion.

"The problems we have in the United Kingdom are scalability, capital, and energy resources. … Working with China can help our capital, and also can help our scalability," said Perry.

"China's statements in the two sessions are about helping foreign companies be more suitable and access China's infrastructure and market. So that is a good thing for the foreign companies," he added.