The success of the Chinese AI firm DeepSeek shocked financial markets and major US tech firms in January 2025. But it shouldn't have come as such a surprise.
Authors
- Naresh R. Pandit
Professor of International Business, University of East Anglia
- Feng Wan
Associate Professor of Management, Zhejiang University
- Peter Williamson
Honorary Professor of International Management, Cambridge Judge Business School
Because, for decades now, plenty of companies in China have been developing competitive advantages that enable them to make remarkable progress. This involves a different strategy to that of many big western firms that rely on things like branding - like Apple - and exclusive technology - like Nvidia - to succeed.
Instead, these less well-known Chinese companies have focused on delivering more innovation faster and cheaper. And our research suggests that they have been able to achieve this by being much more adaptable in how they do business.
So DeepSeek may not be alone as a gamechanger. 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 defence. Its technology has been used in the filming of shows like 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 and foreign partnerships, making the company a dominant player which is tough to compete against.
2. Unitree Robotics
A DJI Innovations spin-off founded in 2016, Unitree Robotics specialises in high-performance quadruped and 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 , Unitree's rapid development cycles -from initial idea, through development and testing, to commercialisation - give it an edge over rivals. This cycle speed is achieved through highly digitised processes, and large highly skilled development teams, which place it ahead of many rivals.
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
Game Science is a Chinese video games firm founded in 2014. Its August 2024 release of Black Myth: Wukong, an advanced role-playing video game inspired by the classic Chinese novel Journey to the West, is one of the fastest-selling games of all time, with revenues of over US$1.1 billion and over 25 million copies sold to date.
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 products. Instead, it offers innovative products that are also cheaper, contributing to China's growing presence in the global gaming market.
4. Yonyou
Yonyou was set up in 1988 to offer business and accounting software to Chinese companies. It now dominates the market in the country and has 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, knowing that this will work better than the one-size-fits-all products available from global competitors.
This has led it to create popular and specific software for industries including retail, education, finance and construction. The company's expertise lies in challenging 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 to do with international trade and the global economy - which 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.
The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
