China’s AI industry is set to surpass US$170B in 2025. Manufacturing, smart devices and chips drive rapid expansion. Policy support positions AI as a long-term growth engine.
China’s core artificial intelligence industry is projected to exceed US$170B in 2025, driven by rapid technological deployment and strong policy backing, according to Global Times. Large-language models are increasingly embedded in manufacturing, where AI adoption rose from 19.9% in 2024 to 25.9% in 2025, accelerating productivity and industrial digitisation.
Growth is also fuelled by consumer-facing innovation. Online sales of AI-enabled smart devices increased by 23% in the first ten months of 2025, while advances in pre-trained models have expanded AI use from analysis to generative and general-purpose functions. China now holds around 60% of global AI patents, reinforcing its leadership in applied AI research.
Strategic policy and infrastructure support remain central. Domestic AI chips account for over 50% of data-centre usage, reducing reliance on imports. Under the State Council’s “AI Plus” initiative, AI integration across six key sectors is planned by 2027, with the intelligent economy positioned as a core growth engine by 2030. China has also proposed a World Artificial Intelligence Cooperation Organisation to deepen global collaboration.