Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
China has caught the AI bug. DeepSeek’s AI models have generated massive buzz—so much so that Chinese technology companies are attracting colossal investments in the stock market.
Investment flow from India to China. According to Bloomberg, China’s domestic and overseas stock markets gained more than $1.3 trillion in value last month alone. That’s great news for China but bad news for India, where the market has shrunk by more than $720 billion. Investors are pulling money from India and moving it to China.
Examples everywhere. Robotics company UBTech Robotics Corp., semiconductor maker Black Sesame International Holding, and drug discovery company XtalPi Holdings Ltd. have raised $546 million in R&D investments. Money is suddenly flowing into Chinese tech firms, allowing them to expand and pursue ambitious projects.
In just one month, Chinese tech stocks are up nearly 25%. Source: Bloomberg.
If DeepSeek can do it, so can others. China’s investment climate has become much more favorable following DeepSeek’s runaway success. Its rise has shown the world that AI models developed in China can compete with those in the U.S., which once seemed to have a clear lead.
Even Xi Jinping is changing his tone. For years, strict government controls over technology companies have affected their performance on the Hong Kong stock exchange. However, a recent meeting between Xi Jinping and several tech industry leaders signaled a shift. The government appears more open to giving private companies more leeway to drive economic growth.
Unbridled optimism. According to Bloomberg, Chinese tech companies are capitalizing on DeepSeek’s status as a golden goose. Optimism surrounding its success has spread across China’s tech ecosystem, pushing sector stocks up more than 25% in just one month.
Watching for the impact of tariffs. China’s situation is unique, but the coming months will reveal more. President Donald Trump’s new tariffs could directly affect the Chinese tech market.
Image | / Ricardo (Unsplash) | Shahadat Rahman (Unsplash)
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