Chinese firms are leveraging artificial intelligence to adapt to new economic conditions amid revived U.S. tariff restrictions.
Active Steps by Chinese Companies in AI
Chinese companies aren't just discussing AI; they are launching new products weekly. Short-video platform Kuaishou reported generating over 100 million yuan in revenue since launching its Kling tool. Tencent released an updated AI model for creating 3D visuals, along with its full Hunyuan T1 reasoning model, significantly increasing user activity on its Yuanbao app. Baidu and Kunlun Tech introduced tools for building websites and simple games using plain prompts and updates in a music creation app.
Pressure on Beijing from the U.S.
As China advances AI technologies, the U.S. is increasing pressure by adding 80 Chinese organizations to its blacklist. These measures aim to block the sale of technologies that could be used against U.S. national interests, including military applications. The U.S. Commerce Department indicated that blacklisted companies engaged in developing advanced AI and high-performance chips.
Role of AI in Maintaining Profits Amid New Tariffs
Chinese firms are striving to offset tariff impacts by more actively deploying AI. According to analyst Ding Wenjie, AI helps raise profit expectations. It automates processes, allowing companies to be more efficient amidst economic constraints. Meanwhile, Wall Street estimates that increased tariffs could lead to a 5% drop in corporate profits.
Despite the U.S. blacklist, China continues its AI momentum, launching new solutions and adapting them to real economic needs.
