Liang noted that China's R&D spending exceeded 3 trillion yuan ($412 billion) in 2023, a record high and more than double the figure from 2014.

"While State-backed research institutions have focused on fundamental breakthroughs, market-driven firms like DeepSeek and Unitree are demonstrating the potential of applied innovation with a more open environment offered by local governments," Liang added.

While AI and robotics have defined China's technological prowess, the country's creative industry has made waves with the blockbuster movie Ne Zha 2 revolutionizing Chinese animation, proving that domestic studios can produce world-class content that resonates with audiences worldwide.

The sequel took things a step further, leveraging cutting-edge animation techniques powered by AI-enhanced rendering and simulation technology, the company said.

With a record-breaking box office haul of over 10 billion yuan, Ne Zha 2 has set a new standard for China's film industry, demonstrating the seamless integration of advanced technology and compelling storytelling, industry experts said.

Much like Hollywood's Pixar and Disney, Chinese studios are increasingly adopting AI-driven animation pipelines, reducing production costs and accelerating development cycles.

As China eyes global expansion in entertainment, homegrown animation studios are emerging as serious contenders in the international market.

Wang from the Beijing Academy of Social Sciences said: "While US policymakers continue to tighten restrictions on China's access to cutting-edge technology, Chinese firms are not merely playing catch-up — they are forging their own paths.

"With DeepSeek charting a new path for AI, Unitree redefining robotics, and Ne Zha 2 pushing animation boundaries, China is proving that its tech sector is more than just a fast follower — it is an emerging global leader in its own innovation."

However, Zhang Xu, deputy secretary-general of the Central Committee of Jiusan Society, said at a symposium that the country's talent evaluation systems and funding mechanisms still need to evolve and "reward original thinking, not just scale".

Zhang argued that China must transform from being a "follower" in innovation to an "originator".

While the country has excelled at rapid commercialization, fostering early-stage breakthroughs — particularly in AI, semiconductors, and biotech — remains a challenge, he said.

He noted that one proposed solution is directing more research funding toward private firms, rather than State-owned enterprises, to accelerate the development of disruptive technologies.

"China's success in industries like robotics and animation suggests that when given the right environment, its private sector can compete globally without reliance on foreign supply chains," he said.