Yesterday’s Lessons post analyzed the AI strategies of China and the United States, concluding they diverge sharply, each shaped by its governance model and priorities. [Here] That discussion raised questions among readers about China’s open-source strategy—questions this post now explores.
Overview
China actively uses and produces open-source software (OSS) as a national strategy to gain technological independence, control critical infrastructure, and drive innovation in areas like AI and blockchain, though it relies heavily on OSS produced outside of China—mainly the US—and open-hardware architecture—for example, RISC-V. The Chinese government strongly backs the software sector through subsidies, programs, and supply chain support, fostering partnerships and distribution agreements across public and private entities working with both proprietary software vendors and open-source software communities. Major tech companies in China—like Alibaba and Baidu—make significant contributions to the open-source community and projects, such as releasing AI models and adopting open standards.
Motivations for Open-Source Use
China’s OSS strategy seeks to:
Reduce reliance on foreign proprietary platforms—whether from Microsoft, Google, OpenAI or others—by prioritizing domestic control over critical technologies such as operating systems. This is framed not only as an economic goal but as a matter of national security and technological sovereignty.
Use OSS to provide flexibility, lowers costs, and reduces exposure to external constraints.
Create a self-reinforcing cycle of rapid innovation and skills development. By tapping into the larger developer communities—especially in hot tech arenas, expanding China’s own dev-comm and encouraging transparent collaboration, China positions itself to accelerate progress in frontier domains like AI, blockchain, quantum and semiconductor design—areas it views as essential to long-term competitiveness and resilience.
DeepSeek – The Model Example
DeepSeek, founded in China in 2023 with support from the open-source community and supported by finely tuned government policies has quickly positioned itself as a disruptive force in the large language model (LLM) world by combining cost-efficient training methods with open licensing that makes its models broadly accessible. Backed by hedge fund High-Flyer, DeepSeek has produced models like V3 and R1 that rival other LLMs in reasoning and code performance while using cheaper hardware and optimized architectures, challenging the idea that only well-funded giants like OpenAI or Google can lead this field. Its openness and low-cost innovation democratize AI access, but also raise concerns around safety, censorship, data governance, and potential misuse, making it both a powerful competitor and a geopolitical flashpoint in the global AI race and US-China AI competition.
Government Support & Ecosystem
According to the AI Plus Plan, OSS development has become a strategic pillar of China’s technology policy, shaping both domestic innovation and international influence. It is also central to other national initiatives, such as the 14th Five-Year Plan, which prioritizes building local software developer communities while positioning Chinese innovations for global export. To accelerate these initiatives, the government provides substantial support for the Chinese OSS industry, deliberately blurring the boundaries between public and private sector interests to foster collaboration. At the same time, emerging regulations are beginning to address the legal and security risks inherent in open-source AI—such as copyright issues and data protection for training datasets—underscoring China’s intent to play a leading role in global AI governance.
China’s Open-Source Landscape
China’s OSS ecosystem is being shaped by a combination of major technology firms, strategic platforms, and hardware innovation. Leading companies such as Alibaba, Baidu, and Tencent are actively open-sourcing AI models—including Qwen and Ernie—while engaging with global communities on platforms like Hugging Face. See also DeepSeek (above). At the infrastructure level, Chinese developers have launched OpenKylin, the country’s first homegrown open-source operating system, which is already deployed in the Chinese space program and other critical industries. In hardware, the adoption of open chip architectures like RISC-V reflects China’s broader drive for semiconductor self-sufficiency, aiming to reduce dependence on Western designs and strengthen control over its technology stack.
Challenges & Outlook
China continues to rely on both foreign proprietary and open-source software, creating a tension between adopting international solutions and developing indigenous ones for greater autonomy.
China is becoming a major consumer and contributor to the global OSS ecosystem, with significant contributions to AI and other software areas, positioning itself as a leader in technological transformation.
China has long faced criticism for weak enforcement of intellectual property rights, a problem that extends into open-source software. Proper licensing is essential for community trust and contributions, yet many Chinese companies have integrated OSS into their products without adhering to license requirements—fueling concerns over misuse, non-compliance, and the erosion of global collaboration.
China has also been a major source of supply-chain and software compromise malware, notably ShadowPad, alongside custom APT tools from groups like APT10, APT41, and Mustang Panda. These campaigns frequently deploy RATs (e.g., PlugX, Poison Ivy), backdoors and loaders (HTran, China Chopper), and mobile spyware targeting Android devices. More recently, a new threat vector has emerged in the form of AI model malware.
Conclusion
China’s embrace of open-source software is both a driver of innovation and a source of global concern. While government backing and corporate contributions have positioned the country as a rising force in the OSS ecosystem, persistent issues around IP enforcement, licensing compliance, and cybersecurity risks highlight the challenges ahead. How China navigates this balance will shape not only its own technological trajectory but also the integrity and trust of the global open-source community.