DeepSeek and China’s high-tech innovation club

The success of Chinese artificial intelligence firm DeepSeek shocked financial markets and American tech groups in January. But it should not have come as a surprise.

For decades now, companies in China have been developing competitive advantages that have enabled them to make remarkable progress.

This involves a different strategy to big Western firms that rely on things such as branding, like Apple, and exclusive technology, like Nvidia, to succeed.

Instead, Chinese companies have focused on delivering innovation faster and cheaper by being adaptable. So DeepSeek may not be alone as a game changer.

Here are four more Chinese firms looking to disrupt the global economy in a similar way.

1| DJI Innovations

DJI Innovations makes low-cost drones that produce aerial photography and videos.

Founded in 2006 by Frank Wang, who became Asia’s youngest tech billionaire at the age of 36, the company develops camera technology and software, as well as engineering drone systems used in industries including agriculture and defense.

Its technology has been used in the filming for Better Call Saul and Game of Thrones.

DJI’s cutting-edge research and development involves highly sophisticated automated assembly lines that make more for less cost. This has led to rapid international expansion, making the company a dominant player the sector.

2 | Unitree Robotics

A DJI Innovations spin-off founded in 2016, Unitree Robotics specializes in high-performance humanoid robots, as well as components like robotic arms. These products incorporate artificial intelligence and have many applications in consumer and industrial markets.

But in a sector where progress can be slower than we might expect, its rapid development policy gives it an edge over rivals. This speed is achieved through highly digitized processes, and large, highly skilled development teams.

For example, in 2024 one of the firm’s humanoid robots already capable of soldering and cooking, set a new walking speed record of 3.3 meters per second. And in early 2025, the company’s robots performed a traditional Yangko dance alongside humans.

3 | Game Science

Founded in 2014, the company released Black Myth: Wukong 10 years later. The advanced role-playing video game was inspired by the classic Chinese novel Journey to the West. It is one of the fastest-selling games of all time.

Revenues of more than US$1.1 billion and over 25 million copies have been sold to date, making Game Science a major player in the industry.

This success demonstrates the firm’s ability to create products that incorporate Chinese cultural elements that also appeal to global tastes.

This is partly down to the company’s prolific data analysis capabilities, allowing it to incorporate vast quantities of feedback from players into its design decisions.

That input gives it a big advantage over competitors, moving beyond the old Chinese export model of making cheap versions of Western goods. Instead, it offers innovative products that are also cheaper, contributing to China’s growing presence in the global gaming market.

4 | Yonyou

Set up in 1988 to offer business and accounting software to Chinese companies, Yonyou now dominates the market in the country. It has also spread to Taiwan, Singapore, Malaysia, Thailand and Indonesia. Beyond Asia is the next goal.

The firm’s success hinges on its ability to optimise its products for local customers while avoiding premium pricing. It understands that business systems vary geographically according to things like local culture, customs and consumer taste.

Yonyou’s proposition is simple but very effective – to develop software that varies to serve idiosyncratic local needs. By doing this, it challenges the conventional wisdom that customised products come at a high cost.

Each of these four Chinese firms clearly understands the advantages to be gained from innovative technology and good strategy, which are both within their control. What they cannot control are the geopolitical factors of international trade.

This makes the future uncertain.

But continuing to work to their particular strengths will make it likely that they – and plenty of others like them – go on disrupting global markets.

Naresh R. Pandit is a Professor of International Business at the University of East Anglia in the UK. Feng Wan is an Associate Professor of Management at Zhejiang University in China. Peter Williamson is an Honorary Professor of International Management at the Cambridge Judge Business School in the UK.

This edited article is republished from The Conversation under a Creative Commons license. Read the original article here.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy of China Factor.