"DeepSeek represents exactly what Beijing is keen to see by 'new-quality productive force' that will push China forward," Wang added, referring to a strategy coined by Xi last year that bets on technological breakthroughs to fuel growth and productivity gains across the economy.
Chinese leadership last year vowed "a leap forward" by spurring new growth drivers based on innovation in advanced sectors, such as AI and semiconductors, as U.S. export controls on advanced equipment and the most advanced semiconductors thwarted its ability to make major tech breakthroughs.
With Beijing signaling support for the startup, a growing number of local governments, from Hohhot in northern China to the southern city of Guangzhou and Shenzhen, are launching DeepSeek-powered "public servants" to automate governance, handling requests from administrative paper work to general public services.