A dramatic smart economy surge is transforming China’s industrial landscape. Tang Hanlin, chairman of a Guizhou data asset firm, saw explosive growth recently. His company’s daily token calls jumped from under 3 billion in January. They reached nearly 12 billion just four months later in April. Consequently, order transactions rose from under 70,000 to over 280,000. This smart economy surge reflects nationwide AI adoption accelerating rapidly.
National daily token calls exceeded 140 trillion in March this year. That represents a more than 1,000-fold surge from 100 billion at early 2024. Tokens serve as basic units for AI models to process information. They have become a key barometer of industry development. Liu Liehong, head of the National Data Administration, confirmed the trend. “China’s AI development has entered a rapid growth phase,” Liu said. Therefore, this smart economy surge demonstrates strong competitiveness across sectors.
China’s 2026 central government work report called for new smart economy forms. This marked the first time such language appeared in the report. The ripple effects are reshaping entire supply chains now. Upstream electronic specialty materials manufacturing jumped 32.5 percent year on year. Midstream integrated circuit manufacturing surged 49.4 percent in the first quarter. Downstream smart equipment manufacturing expanded 16.9 percent accordingly. Furthermore, new business models are emerging as AI tools become more accessible.
In Hangzhou’s AI+ industrial community, entrepreneur Pang Haoyang directs AI employees. His team produces AI-generated short films covering scriptwriting and visual generation. “One person can now do what used to require an entire team,” Pang said. His company has generated over 1 million yuan in revenue since early last year. Similarly, Yueda Textile Group’s green smart plant in Yancheng shows impressive results. The plant now relies on an industrial brain that thinks and optimizes. Consequently, labor productivity has more than quadrupled since the AI transformation. Energy consumption per unit of output fell by 15 percent. Processing costs dropped by 26 percent as well.
This smart economy surge also benefits manufacturers like Goneo Group. The electrical accessories company built an AI-powered knowledge base for customer service. Engineer Zhu Kaijie said the system reduced response times and errors significantly. Meanwhile, surging token demand creates opportunities for AI chips and data centers. Green electricity also stands to gain from increased computing needs. Industry experts say reducing effective cost per token drives innovation. That requires closer alignment between computing power and applications. Full-stack optimization of software and hardware remains essential. Tighter collaboration across the entire industrial chain will help.
China possesses abundant data and a full industrial chain. Vast application markets provide further advantages for AI growth. Experts predict the smart economy surge will continue through 2030. The 15th Five-Year Plan period offers a clear roadmap for development. Government support and private sector innovation work together effectively. Consequently, China is poised to break new ground in smart economy sectors. The nation’s AI competitiveness will likely strengthen further in coming years.
