Official predicts 100 AI breakthroughs

 
Wave of innovation set to change economy

New wave: Signage outside DeepSeek’s office in Beijing. The company’s AI is considered much cheaper to set up than Western competitors. — Reuters

Beijing: China’s advantages in developing artificial intelligence (AI) are about to unleash a wave of innovation that will generate more than 100 DeepSeek-like breakthroughs in the coming 18 months, according to a former top official.

The new software products “will fundamentally change the nature and the tech nature of the whole Chinese economy,” Zhu Min, who was previously a deputy governor of the People’s Bank of China, said during the World Economic Forum in Tianjin yesterday.

Zhu, who also served as the deputy managing director at the International Monetary Fund, sees a transformation made possible by harnessing China’s pool of engineers, massive consumer base and supportive government policies. 

The bullish take on China’s AI future promises no letup in the competition for dominance in cutting-edge technologies with the United States, just as the world’s two biggest economies are also locked in a trade war.

The United States sees China as a key rival in the field of AI, especially after DeepSeek shocked the global tech industry in January with its low-cost but powerful model. 

In addition to efforts to prevent China from securing advanced semiconductor manufacturing equipment, Washington is blocking Chinese companies from acquiring Nvidia Corp’s high-end AI chips for training, citing national security concerns.

Beijing is now pinning its hopes on domestic tech giants like Huawei Technologies Co when it comes to advanced chipmaking. 

The emergence of DeepSeek triggered a rally in China’s tech stocks, fuelling optimism over Chinese competitiveness despite tensions over trade with the Trump administration and economic challenges at home.

Bloomberg Economics estimates the contribution of high-tech to China’s gross domestic product (GDP) climbed to about 15% last year – from near 14% a year earlier – and could exceed 18% in 2026.

Despite a tariff truce negotiated a month ago with the United States, American levies are still at high levels, with a more lasting deal still in question. 

Zhu said the United States will likely see inflation pick up starting in August, as it takes some time for tariffs to feed through to the economy and for companies to use up stockpiles they accumulated before Trump hiked duties. 

“The uncertainty brought by US tariff policy is an important factor that may lead to negative growth in global trade this year,” Zhu told reporters on the sidelines of the forum.

“The entire trade industrial chain has begun to slow, investments has begun to stop, so the impact is greater than the actual tariff rate.”

The World Economic Forum meeting in Tianjin, also known as “Summer Davos”, has attracted global business executives and world leaders. 

Singaporean Prime Minister Lawrence Wong and Vietnamese Prime Minister Pham Minh Chinh are scheduled to speak at the three-day event.

Chinese Premier Li Qiang is expected to address the conference during the opening plenary today and meet with participants.

Despite a tariff truce negotiated a month ago with the United States, American levies are still at high levels, with a more lasting deal still in question.

Analysts polled by Bloomberg forecast GDP will slip to 4.5% this year, significantly below the official target of around 5%. It expanded 5.4% in the first quarter.

“The uncertainty brought by US tariff policy is an important factor that may lead to negative growth in global trade this year,” Zhu told reporters on the sidelines of the forum. “The entire trade industrial chain has begun to slow, investments has begun to stop, so the impact is greater than the actual tariff rate.”

Zhu said the United States will likely see inflation pick up starting in August, as it takes some time for tariffs to feed through to the economy and for companies to use up stockpiles they accumulated before Trump hiked duties.

Despite shocks from abroad, China’s GDP likely grew faster than 5% in the second quarter, according to Huang Yiping, a member of the Chinese central bank’s monetary policy committee. Speaking on another panel at the Tianjin forum, he pointed to the economy’s solid performance in April and May.

But despite strong retail sales in May, when they grew at the fastest pace since December 2023, Huang said China still needs to address the issue of insufficient consumption. — Bloomberg

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Report reveals China's innovation-driven development is gaining steam

A report from China's State Council on Tuesday revealed that the country has made notable strides in advancing innovation-driven development, and that its innovation-driven strategy has been gaining momentum.

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Twilight years of the trade

 

Chinese medical halls slowly vanishing due to costs and demand

Quieter days: Liew checking the herbs on display at his shop in Chulia Street, George Town. —KT GOH/The Star

GEORGE TOWN: Once a popular place for people to get traditional herbs, a century-old medical hall here now stands mostly quiet with the shelves lined with jars meant more for show than trade.

“We stopped selling Chinese herbs in 2014,” said Liew Kong Choy, who has run the shop in Chulia Street for decades.

“Too expensive. The stuff from China got too costly.”

These days, Liew sells balm, oil and a few home remedies to the elderly who still walk in.

But not many do these days.

“Young people go to pharmacies now,” he said. “They don’t believe in this like their parents did.”

Now, they are vanishing. It is partly due to the escalating cost.

“Red dates, wolfberries, ginseng and most Chinese herbs have gone up by 10% to 15% over the past six months,” said Teoh Hai Wei, 43, who still runs a hall nearby.

“Some of the prices vary and depend on the season, some just follow China.”

He said supply problems and shifting demand made the trade harder to manage.

Penang wholesaler Lai Ee Li compared the business to the stock market.

“Prices change every few months,” she said. “Before Chinese New Year, they go up. After that, they drop.

“Depends on the season, what illnesses are spreading and what people think will work.”

She said demand for tiger milk mushroom increases when there’s a spike in respiratory illness. That means the price jumps in tandem.

Other items that have recently gone up include chrysanthemum, lo han guo, barley and hei ko – all rising by between 5% and 15% in bulk.

Even so, Chinese patent medicine still sells, though the numbers have been volatile.

In 2022, China exported traditional Chinese medicine worth US$54.2mil (RM230.4mil) to Malaysia – a 138% jump over the previous year.

But in 2023, the figure fell to US$32.5mil (RM138.2mil), a 40% drop.

“2022 was a surge year because people turned to traditional Chinese medicine during the Covid-19 pandemic,” said Malay­sian Chinese Medical Association president Heng Aik Teng.

“2023 was more of a correction.”

He said rising costs in China also pushed up prices and made it harder for exporters.

Demand in the region, especially in price-sensitive countries, has dropped since the pandemic.

Back in Chulia Street, Liew doesn’t talk about global trade figures.

He just sees fewer people walk past his door.

“I’m still here. But it’s not like before,” he said.

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Related post:

‘TCM, a beautiful calling card’: Decades on, a renowned acupuncturist and his global students promote traditional Chinese medicine worldwide

 

Twilight years of the trade

 

Chinese medical halls slowly vanishing due to costs and demand

Quieter days: Liew checking the herbs on display at his shop in Chulia Street, George Town. —KT GOH/The Star

GEORGE TOWN: Once a popular place for people to get traditional herbs, a century-old medical hall here now stands mostly quiet with the shelves lined with jars meant more for show than trade.

“We stopped selling Chinese herbs in 2014,” said Liew Kong Choy, who has run the shop in Chulia Street for decades.

“Too expensive. The stuff from China got too costly.”

These days, Liew sells balm, oil and a few home remedies to the elderly who still walk in.

But not many do these days.

“Young people go to pharmacies now,” he said. “They don’t believe in this like their parents did.”

Now, they are vanishing. It is partly due to the escalating cost.

“Red dates, wolfberries, ginseng and most Chinese herbs have gone up by 10% to 15% over the past six months,” said Teoh Hai Wei, 43, who still runs a hall nearby.

“Some of the prices vary and depend on the season, some just follow China.”

He said supply problems and shifting demand made the trade harder to manage.

Penang wholesaler Lai Ee Li compared the business to the stock market.

“Prices change every few months,” she said. “Before Chinese New Year, they go up. After that, they drop.

“Depends on the season, what illnesses are spreading and what people think will work.”

She said demand for tiger milk mushroom increases when there’s a spike in respiratory illness. That means the price jumps in tandem.

Other items that have recently gone up include chrysanthemum, lo han guo, barley and hei ko – all rising by between 5% and 15% in bulk.

Even so, Chinese patent medicine still sells, though the numbers have been volatile.

In 2022, China exported traditional Chinese medicine worth US$54.2mil (RM230.4mil) to Malaysia – a 138% jump over the previous year.

But in 2023, the figure fell to US$32.5mil (RM138.2mil), a 40% drop.

“2022 was a surge year because people turned to traditional Chinese medicine during the Covid-19 pandemic,” said Malay­sian Chinese Medical Association president Heng Aik Teng.

“2023 was more of a correction.”

He said rising costs in China also pushed up prices and made it harder for exporters.

Demand in the region, especially in price-sensitive countries, has dropped since the pandemic.

Back in Chulia Street, Liew doesn’t talk about global trade figures.

He just sees fewer people walk past his door.

“I’m still here. But it’s not like before,” he said.

Source link

Related post:

‘TCM, a beautiful calling card’: Decades on, a renowned acupuncturist and his global students promote traditional Chinese medicine worldwide