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China's Accelerating Artificial Intelligence Industry: A Multifaceted Approach

China's Accelerating Artificial Intelligence Industry: A Multifaceted Approach

China's strategic investments and innovations in AI are projected to significantly shape the global technology landscape by 2035.
BEIJING, Mar. 5 — China's advancements in artificial intelligence (AI) are attributed to a combination of domestic innovation ecosystems and active collaboration on the global stage.

Xu Shan, Deputy Director of the International Cooperation and Technical Service Department at the CAICT AI Institute, highlighted this perspective during a recent announcement regarding the 2025 Government Work Report, which outlines future development plans for the AI sector.

The report indicates that China plans to implement a funding mechanism directed toward future industries, including biomanufacturing, quantum technology, embodied artificial intelligence, and 6G technology.

This initiative is part of the broader 'AI+' strategy that has already facilitated the emergence of intelligent networked new energy vehicles, AI-enabled mobile devices, and smart robotics.

The goal is to reinforce the AI industry chain and promote innovative productive forces.

Data released indicates that as of September 2024, China’s core AI industry is nearing a valuation of 600 billion yuan, supported by a network of over 4,500 companies.

Projections suggest that the country’s AI industry is on track to see substantial growth, with expectations for the industry to reach approximately 1.73 trillion yuan by 2035. This reflects a compound annual growth rate of 15.6%, positioning China at the forefront of global AI development.

Experts attribute this boom in AI to the robust ecosystem that integrates foundational research, application development, and market deployment.

Government-backed initiatives in regions like Shanghai are designed to foster industrial innovation.

Additionally, targeted policies assist small and medium-sized enterprises (SMEs) and startups, particularly in specialized fields such as robotics through niche innovations.

Wu Jun, a member of the Chinese Computer Vision Expert Committee, emphasized the critical role of governmental support in facilitating this growth.

He noted that while other nations have been deliberating their approaches to AI, China has proactively established clear policies that address the comprehensive development of the technology.

This proactive stance has led to rapid advancements within a relatively short timeframe.

The AI+ strategy is also seen as a means to cultivate new productive forces through cross-industry collaboration within China.

Notably, major e-commerce and social media platforms utilize vast amounts of user data, paired with sophisticated data analytics and algorithms, to enhance industry intelligence.

This creates a self-reinforcing cycle that further strengthens the nation's AI capabilities.

On a global scale, China is committed to a people-centered approach in AI governance and has taken significant strides in international cooperation under the United Nations framework.

Initiatives such as the Global AI Governance Initiative and the AI Inclusion Program have been proposed to provide solutions for global AI governance.

Furthermore, since 2018, China has been hosting the World Artificial Intelligence Conference, which serves as a venue for international dialogue and collaborative efforts in AI advancement.

Internationally, China has also sought to extend its influence in AI by forming partnerships with educational institutions in other countries.

This includes the establishment of an AI joint laboratory in collaboration with Chiang Mai University in Thailand and a partnership with Taif University in Saudi Arabia to develop AI-driven solutions for autism diagnosis and treatment.

Research efforts will focus on high-precision healthcare algorithms and the application of large model-based analytics for autism intervention strategies.
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