[key points]

Key points

• •The rise of Chinese open-source AI models, including DeepSeek and Qwen, rival Western models in performance but at a fraction of the cost.
• •China is actively encouraging open-source development in AI, with academic and policy incentives to drive innovation and catch up with the US.
• •The next wave of Chinese AI models will be narrower and more diversified, offering options optimized for different tasks, such as coding or instruction following.