China AI: Closing the Gap with US Despite Chip Shortage
China is rapidly closing the AI algorithm gap with the U.S., despite facing a chip shortage, according to experts. This report reveals China’s advancements in artificial intelligence, highlighting how it’s challenging the U.S.’s dominance in the tech sector.Despite the U.S. lead in AI chip technology, Chinese startups like DeepSeek are demonstrating extraordinary algorithm efficiency, using fewer chips to achieve comparable results. Explore the strategies China is deploying to overcome production challenges and foster innovation in algorithm engineering. Learn from insights shared by computer scientist Harry Shum Heung-yeung at a recent summit regarding the strategic shifts in the AI landscape between the nations. Access the latest developments from News Directory 3 for extensive coverage on global tech rivalries.Discover what’s next in the ongoing AI race.
China Closing AI Algorithm Gap with US, Expert Says
Updated June 28, 2025
China is quickly catching up to the United States in artificial intelligence algorithms, despite still trailing in AI chips. Harry Shum Heung-yeung, a computer scientist, addressed the technological competition between the two largest economies at a University of Hong Kong Business School summit Friday.
Shum, council chairman at the Hong Kong University of Science and Technology, said AI competition spans chips, algorithms, and applications. The U.S. maintains a clear lead in chip technology. he added that China’s chip production gap presents a significant challenge for companies in mainland China and Hong Kong, unlikely to be resolved quickly.
To overcome these limitations, Shum, who previously headed AI and research at Microsoft until 2020, suggested China prioritize algorithm engineering breakthroughs. He cited deepseek as a prime exmaple of China’s progress in algorithms.
DeepSeek, based in Hangzhou, has gained attention for its large language models. These models matched Western performance at a fraction of the cost, using only about 10,000 AI chips, compared to the hundreds of thousands used by companies like OpenAI and Google.
What’s next
China’s focus on algorithm innovation may allow it to compete more effectively in the AI landscape, even while facing constraints in chip production. Further advancements in algorithm engineering could lead to more efficient and cost-effective AI solutions.