Logo 01 Mar 2025

Chinese state institutions rapidly adopt DeepSeek

DeepSeek is helping the state modernize.

This week, several media outlets have reported that government bodies and state-owned enterprises (SOEs) are rapidly jumping on the DeepSeek bandwagon.

Some context: Chinese state adoption of LLMs was previously hampered by the fact that the best LLMs were either foreign controlled or closed source.

  • That made genAI adoption either an expensive or risky proposition for state-affiliated institutions.

But no longer: According to multiple media reports, entities across the private and public sector are deploying DeepSeek-powered tools, including:

  • Major cloud service providers
  • Automakers
  • Local governments
  • State-owned enterprises (SOEs) in the energy sector

The bigger picture: For over a decade, Xi has been trying to horsewhip central SOEs into being more innovative and adopting cutting-edge digital technologies, with abysmal results.

  • In 2022, only 4.5% of SOE execs surveyed said that internal digital transformation efforts were "meeting expectations."
  • 60% said their enterprises were in the early stages of transformation, with digitization impacting only an isolated business unit or process.

A relatively unrestricted, inexpensive, and domestically produced tool like DeepSeek will almost certainly boost those efforts.

But but but: SOEs can't simply jump from low levels of digitization to highly effective AI implementation.

  • This will benefit the SOEs that have strong digital teams and thus know how to use these tools.
sources

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DeepSeek is helping the state modernize.
This week, several media outlets have reported that government bodies and state-owned enterprises (SOEs) are rapidly jumping on the DeepSeek bandwagon.
Some context: Chinese state adoption of LLMs was previously hampered by the fact that the best LLMs were e...