China’s AI industry growth continues to accelerate, with over 5,300 enterprises operating nationwide as of September. This accounts for roughly 15 percent of the global AI market, signaling the country’s rising technological influence. The expansion demonstrates China’s ongoing commitment to digital transformation and smart economy initiatives.
According to the China Academy of Information and Communications Technology, the AI sector’s scale surpassed 900 billion yuan in 2024, marking a 24 percent increase compared with the previous year. This growth reflects strong market demand and intensified innovation across multiple AI-related segments, further fueling AI industry growth.
The country’s AI ecosystem now encompasses a complete industrial chain. This includes foundational infrastructure, model architecture, and industry applications. In 2024, revenue in these segments grew by 54 percent, 18 percent, and 13 percent, respectively. Experts note that such balanced growth underscores both the depth and breadth of China’s AI capabilities, contributing to sustainable AI industry growth.
Smart hardware has emerged as a major driver of AI industry growth. Products such as AI-powered phones, computers, and vehicles are experiencing rapid adoption. Analysts suggest that increased consumer demand for intelligent devices is supporting further investment and innovation in AI technologies.
Earlier this year, China introduced the “AI Plus” initiative guidelines. The strategy emphasizes strengthening AI-supportive infrastructure and accelerating technology integration across economic and social domains. Officials aim to use AI to enhance manufacturing, services, healthcare, and urban management, thereby fostering a smart society.
Industry leaders also highlighted the importance of policy support in sustaining AI industry growth. By providing clear regulatory frameworks and promoting research collaboration, China aims to maintain competitiveness in global AI markets. Analysts indicate that domestic firms are leveraging government guidance to develop advanced AI models and commercial applications.
Looking ahead, China plans to continue expanding its AI sector while deepening integration with industrial and societal applications. Observers expect AI industry growth to remain strong, driving innovation, technological leadership, and economic productivity over the next decade.
China’s advancements in artificial intelligence enhance domestic technological infrastructure and reinforce its status as a global AI leader. Continued investment, supportive policies, and innovation are expected to drive further AI sector expansion in the coming years.
