China's Export Evolution: High-Tech Services Outpace Traditional Goods

China’s export growth in telecoms, computer, and information services significantly outpaced traditional goods exports in 2025, signalling a profound structural shift. The nation is rapidly ascending the industrial chain as an emerging exporter of manufacturing technology, moving beyond its historical image linked to physical goods.

Credit: UNSPLASH

In 2025, China's exports of telecoms, computer, and information services reached USD 118 billion, marking a robust 13% year-on-year increase. This growth far outpaced traditional goods, with footwear exports falling 9% to USD 46 billion.

Handbags and suitcases saw a collective export decline of 13% to USD 30 billion during the same period, according to official data. Bank of America chief market strategist Joseph Quinlan noted that China’s new trade front includes information and communication technology, engineering services, and data analytics.

Guangzhou, Guangdong province-based iRootech is one of a growing number of Chinese companies exporting industrial computer vision and artificial intelligence technology. The company secured its first foreign client, German concrete machinery maker Putzmeister, in 2017, and has since worked with thousands of overseas companies.

Xiao Tingting, head of global business at iRootech, explained that the company developed a maintenance platform that can remotely manage concrete equipment. This system uses artificial intelligence to predict future malfunctions, helping Putzmeister reduce travel costs related to after-sales service by 25%.

Ms. Xiao added that iRootech also helps clients identify new revenue sources. Putzmeister achieved a 10% revenue increase by offering customers the option of paying for the remote monitoring service.

Founded in 2016 and backed by China's heavy equipment leader Sany Group, iRootech moved its headquarters to Guangzhou from Changsha, Hunan province, two years later. The company stated its development has benefited from the systematic support of Guangdong province’s manufacturing foundation.

Guangdong has long served as China’s manufacturing hub, with official data showing that revenues from major industrial enterprises have topped all other Chinese provinces for years. iRootech reported a significant increase in overseas orders in 2023.

These orders accounted for more than half of the company’s total contract value, Ms. Xiao told Xinhua News Agency. Without providing an updated breakdown, Ms. Xiao told the SCMP that iRootech’s footprint now covers more than 100 markets, mainly in Asia-Pacific, Europe, North America, and the Middle East.

Similar cases include the Chinese subsidiary of German pump and valve producer KSB, which develops artificial intelligence-powered manufacturing technology. This technology is now being "reverse exported" to Germany.

The KSB subsidiary developed a machine failure testing system that has completed EU standard certification. He Jun, regional executive officer of KSB Group Asia North, indicated plans to introduce the product to the German market in the second half.

Chinese artificial intelligence vision developer Hefei Taihe Intelligent applies deep learning to the sorting of nuts. Showcasing its technology at the Spring session of the Canton Fair, the company received numerous inquiries.

Public relations director Hu Xingxing noted interest from visitors from major nut-producing regions, including India and Africa. Estimates by Chinese newspaper 21st Century Business Herald suggest over one third of Canton Fair exhibitors have transitioned to exporting products plus services.

The World Trade Organization reported that China ranked sixth globally for exporting digitally delivered services last year, a jump from 11th a decade earlier. This places China ahead of countries such as Japan, France, and Switzerland.

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• China is undergoing a structural shift in its export economy, moving from traditional goods to high-tech services.

• Exports of telecoms, computer, and information services grew by 13% to USD 118 billion in 2025, far exceeding traditional goods.

• Chinese companies like iRootech are exporting industrial artificial intelligence and computer vision technology globally.

Source: SCMP

DeepSeek V4 Launch Signals Stronger Demand for China-Made AI Chips

DeepSeek’s recent launch of its V4 artificial intelligence (AI) model could prompt a re-evaluation of stocks across the industry. Analysts anticipate widespread impact, affecting companies from chipmakers to large language model developers.

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The breakthrough is poised to drive significant demand for computing power and foster broader commercial adoption of AI technologies.

The V4 series unveiling is a milestone for Hangzhou-based DeepSeek. The startup described its new model as the most powerful open-source platform, capable of challenging US rivals such as OpenAI and Anthropic.

DeepSeek stated that the model delivered top-tier performance in coding benchmarks. It also demonstrated significant advantages in reasoning and agentic tasks, affirming its advanced capabilities.

AI chipmakers, including Cambricon Technologies and Moore Threads Technology, are positioned to benefit from this progress. Increased demand for high-performance chips produced in mainland China is expected.

The launch may also reduce the costs of integrating AI into daily life, expanding commercial usage. This could potentially benefit AI firms such as MiniMax and Knowledge Atlas Technology, known as Zhipu.

Su Lingyao, an analyst at BOC International, stated DeepSeek’s V4 has lowered the entry barrier for using high-performance AI models. The model will offer more affordable AI capabilities to small and medium-sized enterprises, and even individuals.

Lingyao added that DeepSeek’s V4 is highly compatible with domestically made chips. This compatibility is expected to accelerate the commercialisation of AI computing power within China.

Brokerages identified other potential beneficiaries, including chipmakers such as Hygon Information Technology and MetaX Integrated Circuits. Fab operators, including Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor, were also mentioned.

China’s AI chip market could grow to 1.34 trillion yuan (USD 196.2 billion) in 2029, according to Guotai Haitong Securities. This represents a significant increase from 142.5 billion yuan in 2024.

The projected growth translates into an annual compound rate of 54%. The Star Market 50 Index of major technology stocks in Shanghai, where Cambricon and SMIC are listed, jumped 25% in April to approach a five-year high.

The index approached a five-year high, and Cambricon’s stock rose to a record high on Thursday. DeepSeek’s launch coincided with a renewed rally in US technology stocks.

The Nasdaq 100 index recovered all losses from the oil shock, hitting a record high last month. Investors are betting that earnings at major technology firms will be insulated from crude supply disruptions.

Continued investments in AI infrastructure by hyperscalers are also expected to bolster earnings at Asia’s chipmakers. Analysts noted that the V4 was optimised for domestic chips.

This optimisation could reinforce the model’s role within China’s technology stack, particularly under existing sanctions. DeepSeek was reportedly in discussions with Tencent Holdings and Alibaba Group Holding regarding its initial external funding round.

Morgan Stanley described Chinese models as efficient, delivering performance similar to US counterparts. These models achieve comparable results at only 15% to 20% of the inference costs.

The US bank also suggested that Chinese AI model companies, such as MiniMax, are undervalued given their growth prospects. Major players increased product prices from the second quarter to the first quarter.

This price adjustment was driven by performance improvements, indicating a shift from pure commoditisation to performance-based monetisation. Morgan Stanley believes these stocks could reshape Hong Kong’s stock market by attracting more inflows.

MiniMax and Zhipu are highly likely to join the Hang Seng Tech Index in June, with combined weightings between 5% and 7%. This inclusion could bring inflows of as much as USD 1.75 billion from passively managed funds, Morgan Stanley said.

These two stocks are expected to attract additional buying from mainland China investors. This would occur after their inclusion in the exchange link programme by August.

Purchases could amount to as much as a fifth of their free-float market capitalisations within six months of inclusion. Li Kefu, an analyst at Sinolink Securities, emphasised the significance of DeepSeek’s collaboration with domestic chipmakers.

Kefu highlighted that this partnership drives the coordinated development of hardware and software for large language models. It also accelerates self-controlled computing power domestically.

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• DeepSeek's V4 AI model is expected to boost demand for computing power and increase commercial AI adoption.

• The launch positions Chinese AI chipmakers and firms like Cambricon Technologies and MiniMax for significant growth.

• Analysts believe the V4 lowers the cost threshold for high-performance AI, making it accessible to smaller businesses and individuals.

Source: SCMP

China’s Bionic Robot Fish Advances Underwater Monitoring, Exploration

Chinese engineers have developed a bionic robot fish equipped with sensors and artificial intelligence, capable of swimming like a real animal and operating autonomously. This technology represents an advance in the race for underwater dominance and could transform ocean monitoring, exploration, and surveillance.

Credit: CPG

On May 14, 2025, professors and students at Wuhan University in Wuhan, China, unveiled a 53-centimetre biomimetic underwater robot. This device was developed for projects protecting the Yangtze River, according to the Wuhan Science and Technology Department.

The machine mimics the shape and swimming motion of a real fish, using body joints to reproduce natural movements. It also features obstacle avoidance sensors and AI learning capabilities. Unlike traditional propeller-driven underwater drones, this new generation of robot fish uses fin-inspired propulsion, which distinguishes it by reducing noise and improving displacement efficiency.

This new generation of robot fish uses fin-inspired propulsion, which can reduce noise, improve displacement efficiency, and lessen environmental impact during aquatic monitoring operations. An article published in 2025 in the scientific journal The Innovation describes these robots as autonomous systems designed with biomimetic principles.

These robots are capable of swimming and performing specific tasks in water, offering advantages such as manoeuvrability, low noise, and greater operational discretion. The primary innovation is the application of biomimetics, an engineering field that replicates solutions from nature.

Adopting undulating movements, similar to those of real fish, offers several technical advantages over conventional mechanical systems. These include lower energy consumption, greater hydrodynamic efficiency, significant noise reduction, and enhanced manoeuvrability in complex environments.

The robots are equipped with advanced sensor systems and artificial intelligence. These systems enable obstacle detection, autonomous navigation, environmental data collection, and real-time environmental adaptation.

Integration with learning algorithms allows the robot to adjust its behaviour based on water conditions, currents, and the presence of objects. This transforms the robot into an intelligent platform capable of operating with minimal human intervention.

One consolidated application of this technology is in environmental monitoring. Robot fish can be used for water quality analysis, pollutant detection, aquatic ecosystem monitoring, data collection in sensitive areas, and much more.

Moving similarly to natural organisms, these robots cause less environmental impact and can approach areas challenging for conventional drones. This characteristic makes the technology particularly useful for ecological studies and environmental preservation.

Beyond scientific applications, the silent, natural behaviour of these robots draws attention for its strategic potential. The absence of propellers and fish-like movement make these devices less detectable in underwater environments.

This opens possibilities for inspecting submerged structures, monitoring maritime areas, and collecting data in sensitive environments. While direct military use is not always explicitly confirmed, the technology suggests strong dual-use potential.

The same system that monitors a river can, in another context, be adapted for strategic operations. The development of robot fish is part of China’s broader investment in biomimetic underwater projects.

These include robots inspired by jellyfish and other marine organisms. Such projects are part of a larger movement investing in autonomous technologies, focusing on underwater robotics, artificial intelligence, and unmanned systems.

The goal is to expand technological presence in environments where human access is limited or unfeasible. While China is advancing rapidly, the development of underwater robotics is a global trend, with other countries also investing in autonomous underwater vehicles, maritime drones, and ocean surveillance systems.

The distinction with biomimetic robots lies in their approach, prioritising efficiency, discretion, and environmental adaptation over mechanical force. This could represent a paradigm shift in how underwater operations are conducted.

Despite advances, robot fish still face technical challenges. Key limitations include limited energy autonomy, restricted payload capacity, and maintenance complexity.

Operating in deep marine environments requires additional advancements in resistance and control. The technology is currently at an advanced research stage but is still maturing for large-scale applications.

The trend suggests that robots like these will evolve into more complex systems, potentially operating in groups or integrated into larger monitoring networks. Combined with other technologies, they can form systems capable of mapping underwater environments in real time.

These integrated systems could also operate continuously for long periods and interact with other autonomous platforms. This type of integration significantly expands the reach and utility of the technology.

With robots capable of swimming like fish, operating autonomously, and collecting data silently, biomimetic underwater technology is beginning to redefine engineering limits and ocean exploration.

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• Chinese engineers developed a bionic robot fish with AI and sensors.

• The 53-centimetre robot, unveiled by Wuhan University, mimics real fish for quiet, efficient underwater movement.

• Its capabilities include obstacle avoidance, autonomous navigation, and environmental data collection.

Source: CPG