AIF Insights No. 2 (2025) | China’s AI Sputnik Moment: Lessons for a World in Transition

AIF Insights No. 2 (2025) | China’s AI Sputnik Moment: Lessons for a World in Transition

China’s development of DeepSeek, a competitive AI model emerging despite U.S. sanctions and technological restrictions, represents a modern “Sputnik moment” in artificial intelligence. This paper explores how China’s strategic investment, policy coordination, and resilience in overcoming semiconductor shortages propelled its AI advancements. Unlike fragmented efforts in the West, China’s unified approach, localization strategy, and prioritization of talent have created a competitive edge in AI governance. The paper highlights broader lessons for global technological growth, emphasizing innovation under constraints, the significance of digital sovereignty, and the evolving geopolitical implications of AI supremacy in an increasingly multipolar world.