DeepSeek boosts Chinese economic growth

The surprise emergence of DeepSeek has given China a powerful tool to boost the country’s adoption of artificial intelligence and spur economic growth. Goldman Sachs expects a 20-30 basis point increase in China’s long-term GDP by 2030.

Experts expect China’s economy to start seeing the positive impact of AI adoption starting next year, as AI-driven automation improves productivity.

“The recent emergence of DeepSeek suggests that China is developing and adopting AI faster than we expected,” Wall Street economists said, according to CNBC.

The enthusiasm around DeepSeek is reflected in a surge in Chinese stocks, with the MSCI China Index up more than 21% since its January low, according to LSEG data. Morgan Stanley said in a note this week that the startup’s rise has led to a reassessment of China’s “investability” after a long period of limited interest. “The emergence of DeepSeek demonstrates that China is at or near the forefront of AI development, strengthening its economic and technological position and making it more attractive to global investors,” said Gabriel Wildau, managing director at Teneo. DeepSeek has had a major impact on China’s AI ecosystem, with state-owned entities and major tech players, including its competitors, benefiting from it. “The pace and speed of AI adoption in China is astonishing, and things don’t seem to be slowing down,” said Wei Sun, principal AI analyst at Counterpoint Research.