The Real Difference Between Chinese AI and International AI Is Not What Most People Think.
The Real Difference Between Chinese AI and International AI Is Not What Most People Think.
By: Khaled Salama
Since I have been living in China for the past 16 years and using Chinese apps every day, while also using international apps because I travel often to the UAE, Saudi Arabia, and Egypt, I wanted to share something that has really caught my attention recently: the growing competition between Chinese AI and international AI.
Yesterday, Saturday 25th April 2026, I attended an AI and product-focused event in Shenzhen, organized by the Shenzhen government.
What I saw there was impressive.
And to be honest, it made me think more seriously about the difference between international AI — by that I mean tools like ChatGPT, Claude, and Microsoft Copilot — and Chinese AI apps such as DeepSeek, Doubao, and Ollama-based solutions.
I have used ChatGPT from day one, and I am still using the paid version. It has helped me a lot in my work. But after speaking yesterday with several Chinese people working across both software and hardware, I came away with one important idea:
AI in China is being built not only as a technology product, but also as a tool to support Chinese companies, manufacturers, and product development at scale.
I think this is a key difference.
For many years, one of the biggest challenges in China has been that US and European companies came with their own software, systems, and platforms, while China was mainly providing the hardware and manufacturing side. This created an imbalance in where the value was captured.
If we take Apple only as an example of that type of structure — and I am not talking about Apple as a company specifically, just as an example — the Chinese manufacturer may keep a limited part of the value, while the company controlling the software and ecosystem captures a much bigger share of the profit.
Now, by making AI available to Chinese manufacturers and product companies, China may be creating a new path for these companies to move deeper into the value chain.
In simple words: they are not just making products anymore — they are starting to build more of the intelligence behind the product as well.
That could be a very important shift over the next few years.
Another interesting discussion I had yesterday was with a Chinese gentleman who had spent 15 years in Silicon Valley and developed AI glasses.
It was a very advanced product. But when he first tried to manufacture it in the US, people told him it would take one to two years. Then he moved his company to Shenzhen.
Within one month, the mold was done. Within another month, the product itself was ready.
That story says a lot.
What Shenzhen seems to be doing very well is combining AI technology, data, research, software, and strong local manufacturing capability in one ecosystem. That is where the real power is.
In many places, AI is still mainly a software conversation. In Shenzhen, it is becoming a product and industrial conversation.
Speaking personally, I still like ChatGPT a lot. It is powerful, polished, and very useful. But when I tried Chinese AI tools such as DeepSeek and Doubao, I noticed something different.
I am not saying Chinese AI is better in every area. But in some practical product-development tasks, it can sometimes feel more open and more detailed.
For example, when you ask it about developing a product, it may give you many options, ideas, and detailed directions without narrowing the answer too early. And in product development, that matters, because you often need all possible options before making a decision.
I also know a Chinese e-commerce seller working in the US Amazon market whose company made around USD 82 million in revenue last year.
The company was facing problems with creative work and a huge number of product photos. They tried ChatGPT, extensions, and other websites, but they were still not getting the result they needed. Then when they used a Chinese AI tool like Doubao for that specific use case, it gave them much better output.
This does not mean Chinese AI wins in everything.
There are definitely areas where international AI is still stronger.
But it does show something important:
Chinese AI is becoming very strong when it is closely connected to real local business needs, especially in e-commerce, product development, operations, and manufacturing.
And this is where I think the difference in direction becomes very clear.
Many Chinese AI companies are working with open-source models, cooperating with each other, and also aligning closely with local government support and industrial goals. The goal is not only to create the smartest chatbot. The goal is to push the whole ecosystem forward.
Another point worth watching is that China’s AI progress does not seem to be limited to the models themselves. It is also starting to connect more directly with the hardware layer behind them. A recent example is DeepSeek’s new V4 preview, which Reuters reported was adapted to run on Huawei’s Ascend AI chips, while Huawei said its Ascend 950-based supernode would fully support the V4 series. That matters because it suggests China is not only building AI applications, but also pushing toward a more self-sufficient AI stack across software, infrastructure, and chips.
That matters a lot.
Because if one side can build powerful AI tools while also reducing dependency, improving engineering efficiency, and lowering deployment costs, then the competition is no longer only about who has the smartest model. It also becomes about who can scale AI faster, cheaper, and across more real-world use cases. This is a reasonable inference from the DeepSeek-Huawei collaboration Reuters described.
In that sense, China’s approach appears to be very pragmatic: control cost, move fast, and build technology that is commercially usable as quickly as possible.
On the other side, US and European AI companies are competing aggressively with each other, trying to build stronger products, bigger market share, and more revenue.
So the direction feels different.
In China, AI seems to be pushed as a tool for industrial growth, speed, and commercialization.
In the US and Europe, AI is still more centered around platform competition, product leadership, and monetization.
That is why I feel the competition between Chinese AI and international AI is not simple at all. They are not only building different products — they are building with different priorities.
And while much of the world is focused on geopolitical tensions, Shenzhen seems focused on one thing: building.
Not just concepts. Not just demos. But real, commercialized AI products across many categories:
• AI speakers and smart home assistants
• AI wearables, including watches, glasses, and sunglasses
• AI-powered headphones and translation devices
• AI pets and interactive robots
• AI robots for home, service, and industrial use
• AI bicycles and mobility solutions
• AI cameras and smart surveillance systems
• AI fire safety and detection systems
• AI office tools and automation devices
• AI fitness and health products
• AI swimming goggles and sports technology
• AI toys and educational products
• AI retail devices and vending solutions
• AI logistics and warehouse automation
• AI voice systems, including very niche applications
This was probably the biggest takeaway for me from yesterday’s event:
China is not just catching up in AI. It is rapidly integrating AI into real products, real use cases, and real markets.
And when that happens, the gap between innovation and commercialization becomes smaller and smaller.
I also remember a conversation a few years ago with a friend working in a US tech company. Back then, the common view was that China was focused more on low-value industries, while the US and Europe dominated the high-value space.
Today, that narrative feels like it is changing — and changing fast.
So in the end, the real question may not be which side has the “better AI” today.
The real question may be:
Which ecosystem can turn AI into real business value, real products, and real market impact faster?
That is the part I will be watching closely.
And honestly, after what I saw yesterday in Shenzhen, this competition is becoming far more interesting than many people think.
