DeepSeek AI to fighter jets: How China is one-upping western dominance

From sixth-generation stealth fighter jets that outpace their rivals to launching DeepSeek, an AI chatbot built at a fraction of the cost of its Western counterparts – China is sending ripples across industries and borders.

 

These achievements have reignited the race for supremacy in innovation. With groundbreaking advancements in artificial intelligence (AI) and cutting-edge military technology, the Asian giant is challenging long-standing Western dominance in innovation and defence.

 

China’s DeepSeek: AI Excellence at a Bargain 

At the centre of this disruption is DeepSeek, an AI chatbot developed by a Chinese startup that has shaken up the nascent AI industry, dominated by the West till now. Launched last month, DeepSeek stunned global tech leaders with its cost-efficiency: a mere $6 million investment compared to the billions poured into AI models by giants like OpenAI, Google, and Meta.

 

Despite its modest budget, DeepSeek’s performance rivals the best in the industry. Within weeks of its debut, it became the most downloaded app on Apple’s US App Store, dethroning ChatGPT in markets such as the UK, Canada, and Singapore. What makes it even more appealing is its cost — just $0.50 per month for a paid subscription, compared to ChatGPT’s $20 starting price.

 

The ripple effect has been profound. Global markets have been in a free fall, with artificial intelligence and semiconductor stocks plummeting. Nvidia, the US chip giant, has lost nearly $600 billion in market value in a single day — marking the largest one-day loss for any company in US history.

 

Sixth-generation fighter jet shock 

China’s advancements aren’t limited to artificial intelligence. Last month, it unveiled not one, but two sixth-generation stealth fighter jets, redefining the standards of modern aerial warfare. These jets boast advanced AI-driven automation, extended range, and greater payload capacities — putting China years ahead of its competitors.

 

While the US won’t see its sixth-generation fighters operational until the 2030s, and India’s fifth-generation jets remain in development, China’s leap in military aviation has raised alarms globally. This milestone follows a series of strategic launches, including one of the world’s largest amphibious warships and a sophisticated airborne intelligence platform.

 

A wake-up call for the US, says Trump 

US President Donald Trump has acknowledged the significance of China’s rapid advancements, calling them a “wake-up call” for American industries. In response, his administration has pledged $500 billion to ‘Stargate’, an initiative to strengthen AI infrastructure and innovation.

 

While these measures aim to reclaim leadership in AI and defence technology, the clock is ticking for the US. China’s momentum has not only reshaped competitive dynamics but also reignited the global arms race and tech innovation sprint.

 

China’s R&D investment grows 

On the other hand, China is actively challenging the belief that Western nations maintain an unbeatable lead in science and technology. The pressing question is whether this marks the beginning of a broader shift in global power or serves merely as a cautionary signal. According to preliminary data from the National Bureau of Statistics, a report by the South China Morning Post mentioned that China’s R&D spending surpassed 3.6 trillion yuan (around $496 billion) in 2024, an increase of 8.3 per cent compared to the previous year.

 

In recent years, China has intensified efforts to drive original innovation and pursue groundbreaking research, aiming to achieve technological self-reliance, sustain economic growth, and strengthen its competitive edge against the US.

 

In 2021, the country’s R&D spending surged by 14.6 per cent year-on-year. However, the growth rate moderated in the following years, reaching 10.1 per cent in 2022 and 8.4 per cent in 2023, reflecting post-pandemic economic pressures. Despite this, R&D investment intensity has steadily grown, rising from 2.38 per cent in 2021 to 2.49 per cent in 2022 and 2.58 per cent in 2023.