Weblog with daily updates of the news on a frugal, fair and beautiful China, from the perspective of internet entrepreneur, new media advisor and president of the China Speakers Bureau Fons Tuinstra
China’s car makers take the lead in developing their software-driven industry, and innovation expert Ashley Dudarenok explains how the global industry can learn from their Chinese competitors in her weblog.
Ashley Dudarenok:
In our China Economic Mega Report 2025, one of the clearest shifts in Chinese consumer technology is cars changing from a physical product into a software defined vehicles. The consequence shows in the numbers.
In the first two months of 2026, L2-level combined driver assistance penetration in China’s newly sold passenger vehicles reached 69.15%, up 10 percentage points year-on-year, per Ministry of Industry and Information Technology data.
The vehicle operating system has become the primary competitive variable in the world’s largest auto market. What China figured out first, and why that lead compounds, is what this article maps.
Innovation expert Ashley Dudarenokcompares at her weblog Chozan two AI models your company can pick from in 2026. “DeepSeek vs Claude is not a comparison of two AI tools. It reflects two fundamentally different ways of deploying intelligence inside an organization,” she writes.
Ashley Dudarenok:
DeepSeek vs Claude is not a comparison of two AI tools. It reflects two fundamentally different ways of deploying intelligence inside an organization.
In 2026, the critical question is no longer which model performs better. It is how AI is integrated, scaled, and governed across real systems. DeepSeek and Claude represent opposite answers to that question.
McKinsey reports that 88% of companies now use AI in at least one business function, but only about one-third have actually scaled it across the organization. That gap—between using AI and scaling it—is exactly where the difference between DeepSeek and Anthropic shows up.
DeepSeek treats AI as a cost-efficient, flexible infrastructure layer that companies can shape and deploy internally. Claude treats AI as a controlled, enterprise-ready system designed for reliability and structured execution.
This distinction matters because companies are no longer experimenting with AI. They are deciding how deeply it should be embedded into operations, and that decision requires choosing an architecture, not just a model.
How far is China ahead of the Western world? Bjorn Ognibeni advised German companies over the past twenty years on their China policies and looks into this question at the Evolve Commerce Club.
If you want to understand why China is pulling ahead in the humanoid race, don’t start with the robots. Start with what’s underneath them.
Supply chain speed is the advantage: In Shenzhen, a robotics startup can source high-torque actuators, precision harmonic drives, and rare-earth magnet motors within a 30-minute drive. This “half-hour supporting circle” means prototypes that take Western companies 18 months to iterate can be revised in 3–6 months.
Real-world data is the edge: China has established a growing network of humanoid robot training facilities, including two national-level centers in Beijing and Shanghai, with regional hubs across the country. These facilities are collectively amassing millions of real-world training data points annually. And these aren’t sanitized lab environments; they’re 1:1 replicas of real factories, warehouses, and retail spaces.
Clear standards are the shortcut: On February 28, 2026, China released its first national standard system for humanoid robotics, covering six core areas: foundational standards, brain-like computing, hardware components, whole-machine systems, applications, and safety ethics. This isn’t bureaucracy for its own sake but a playbook for scale. As industry moves from the “0 to 1” phase into “1 to 10,” standards are what keep everyone from reinventing the wheel.
The results are measurable. According to the International Data Corporation, China’s embodied intelligence robot market will top $11 billion in 2026. The country’s service and consumer robotics manufacturers, meanwhile, are expected to account for more than 85% of global shipments.
Leading China economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, looks at what is known about the upcoming 15th 5-year plan, bound to be approved by the National People’s Congress in March 2026. Most of the known information suggests no major changes, with an ongoing focus on manufacturing rather than consumption, as in the past, he tells Keith Yap in the Front Row Podcast.
For years, the growth of AI was built on scaling up its GPUs, but innovation expert Alvin Wang Graylin, author of Our Next Reality: Preparing for the AI-powered Metaverse, sees now a move to more collaboration. Chip maker Nvidia is not the only winner anymore, as competition is growing and AI models can develop through more experience and need less capacity to grow, as China’s Deepseek proved earlier this year, he says at the Big Bang Future Lab.
China’s technology, design, and culture are part of a fusion that reshapes the country, says innovation expert Ashley Dudarenok in an analysis by the state-owned China Daily. “It’s a holistic shift, where tech meets culture, design, and daily life, and this wave is just starting,” according to Ashley Dudarenok
China Daily:
The fusion of technology and storytelling has elevated Chinese pop culture to new heights. Video games such as Black Myth: Wukong, based on the classic novel Journey to the West, are drawing global praise for both their cinematic visuals and mythological depth.
“It’s a holistic shift, where tech meets culture, design, and daily life, and this wave is just starting,” according to Ashley Dudarenok, founder of China-focused digital marketing company Alarice.
Platforms like TikTok and Xiaohongshu (RedNote) are at the center of this movement. TikTok, developed by China’s ByteDance, is not only a global leader in short-form video but also ranked by Brand Finance as the world’s seventh most valuable brand, ahead of Instagram and Facebook…
Dudarenok attributed this rise to China’s multi-pronged strategy of massive R&D investment, tax incentives for global co-productions, and a creative wave led by Gen Z content makers.
In 2024 alone, China invested 3.6 trillion yuan ($502 billion) in research and development, as per the National Bureau of Statistics…
Younger generations, particularly Gen Z and Millennials, are engaging with China in more nuanced ways. According to Brand Finance’s 2025 Soft Power Index, perceptions of China among digitally connected young people have improved significantly since 2020.
“Gen Z appreciates the blend of heritage and hyper-modernity,” said Dudarenok. “Black Myth: Wukong isn’t just a game, it’s a cultural ambassador that shifts how people view Chinese creativity.”…
Despite the momentum, challenges remain. Some cultural exports still struggle to resonate abroad due to localized storytelling or dense cultural references.
“Many Chinese pop culture exports focus on fusing ancient stories with modern values, which can sometimes limit global reach,” said Dudarenok from Alarice.
She pointed to Ne Zha 2, which became the highest-grossing animated film of all time, yet earned 99 percent of its revenue on the Chinese mainland.
“While the world is fascinated by companies like DeepSeek and Unitree, it will take time for people to fully embrace these innovations,” she said. “As interactions with China increase, initial apprehension will give way to excitement and appreciation.”
AI tools to generate videos, like TikTok, have been challenged by a new wave of innovations using AI as filmmakers, says Winston Ma, author of The Digital War: How China’s Tech Power Shapes the Future of AI, Blockchain and Cyberspaceat CNBC. “Just like TikTok took the global markets by storm with short videos in the mobile internet age, Chinese AI companies could well lead the Generative AI revolution in visual digital entertainment,” said Ma.
CNBC:
Chinese e-commerce giant Alibaba has also stayed on top of the trend by releasing the latest version of its video generation AI model this week called Wan2.2. The company claimed that with the open-source model, users can control lighting, time of day, color tone, camera angle, frame size, composition and focal length.
Open source allows users to download a model for free, and customize, if not commercialize, products with it. Alibaba claimed that since open sourcing the “Wan” model series in February, the models have been downloaded more than 5.4 million times from the Hugging Face platform and a similar one in China called ModelScope.
“The age of AI in film is over. We’ve entered the age of AI as filmmaker,” said Winston Ma, adjunct professor at NYU School of Law. He pointed out that China’s 1.4 billion population has given local companies “enormous” amounts of video-watching data to work with.
VC capital in China has dried up, but global VC William Bao Bean still sees opportunities for startups if they play their cards right, he says in an interview with Ashley Dudarenok. Most of the VC money did come from the government, and that capital is still available, although less through traditional VCs, he says.
Who will be winning the race in innovation, China or the US? Marketing expert Ashley Dudarenok expects China will have advantages, not only with Deepseek playing its way into AI development but also for robotics to NEVs, quantum computing, and eVTOL she explains at the Jing Daily.
Ashley Dudarenok:
From AI and robotics to NEVs, quantum computing and eVTOL, the country is setting the pace for global advancements. These developments reflect a broader vision to transition from being the “Factory of the World” to the “R&D Center of the World.” For businesses, the opportunities are vast, but so are the challenges. Success will depend on the ability to adapt, forge meaningful collaborations, and stay ahead in a rapidly evolving market. As China continues to shape the future of technology, the question is not whether to engage, but how to do so effectively and safely.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Get in touch or fill out our speakers’ request form.
Are you looking for more innovation experts at the China Speakers Bureau? Do check out this list.
Much attention goes to industrial innovation to save China’s sluggish economy. But leading economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, is not too sure that path is helping the economy, he tells at NPR. “Growth is probably going to be pretty sluggish for a few more years yet. And they’re not going to get this magical nirvana that they hope for,” he adds
NPR:
WOODS: But the strategy may have its limitations, according to Arthur Kroeber. Arthur is one of these long-time China heads. He’s written a book. He started a China macroeconomics firm. He divides his time between New York and Beijing. He says that the government’s theory seems to be that heavy investments in tech will lead to productivity breakthroughs. Those productivity breakthroughs will then lead to higher wages and good jobs
ARTHUR KROEBER: I don’t think that that is very likely, because the problem with that is you look at all these high-tech industries that everyone is so excited about, EVs and batteries and whatnot, but they’re not very profitable.
RUWITCH: Arthur says there’s a capacity glut, a lot of stuff being produced, but not enough buyers to keep businesses standing on their own two feet. Companies in the solar sector are struggling. In batteries, profits are falling. Profitability in EVs is dropping. And a lot of this is due to competition with other companies in China.
KROEBER: Everyone is struggling, so they’re all barely making money. And so they don’t have a lot of ability to hire lots of people and give them big wages.
WOODS: Without those big wage increases, Arthur says, it’s hard to see how growth in high-tech industries will spill over to the rest of the economy.
RUWITCH: He says China’s industrial policy has been successful at a certain level.
KROEBER: They’ve got a lot of very competitive manufacturing industries. But the– but growth is probably going to be pretty sluggish for a few more years yet. And they’re not going to get this magical nirvana that they hope for.
Business analyst Shaun Rein looks at the nervewracking few weeks for the global IT industry, starting with the DeekSeek moment of fame, proving that China was way ahead of the US competition in AI. Also, TikTok, Trump’s curtailing of Nvidia, RedNote’s success, censorship in the US, and Silicon Valley get his verdict on East-West Investment opportunities.
Winston Ma, Professor (Adjunct) and Executive Director, Global Public Investment Funds Forum, New York University School of Law and author of “The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy” gives advice on how to find the new unicorns and where to invest in digital infrastructure, cloud computing, and data preparation at the Cube, hosted by SiliconANGLE Media Inc. Co-Founder and Co-CEO John Furrier.
Marketing expert Ashley Dudarenok dives into 40 years of marketing innovation that has put China in a leading role right now. A showreel giving an overview of Ashley’s amazing career and deep involvement with leading companies, both foreign and domestic, in China.
US sanctions on China make it harder for Chinese companies to develop large-scale AI systems because they lack access to finance and computing power, says Winston Ma, adjunct professor of law at the New York University School of Law. But they will focus on AI applications and their commercialization rather than developing the big systems, he tells CNBC.