China’s core AI industry is projected to exceed 1.2 trillion yuan in 2025, per CAICT, underscoring a rapid expansion driven by broader applications and policy support.

CAICT data show the core AI market topped 900 billion yuan in 2024, up 24% year on year, with stronger growth anticipated in 2025 as applications widen.

Demand is being fueled by broader application scenarios across internet services, finance, manufacturing, and new consumer tech like wearable AI devices, spurring economic growth.

Large AI models have seen substantial upgrades, with language understanding improving about 30% and multi-modal understanding about 50%, boosting capabilities this year.

Industry leaders say AI is transitioning from purely technical innovation to delivering real-world, productive impact, marking a pivotal turning point for the sector.

The embodied intelligence sector, blending AI with robotics, has expanded rapidly, attracting over 40 billion yuan in financing and involving more than 350 companies along the supply chain.

Advances in pre-trained large-language models (like DeepSeek) are pushing AI toward cognition and broader general-purpose capabilities, accelerating industry evolution.

Large-language model applications in manufacturing have risen from 19.9% to 25.9% of use cases this year, contributing to overall sector growth.

China’s competitive edge rests on its vast market, diverse applications, and pro-growth policy environment, supporting ongoing AI leadership and global collaboration, including ideas for a World Artificial Intelligence Cooperation Organization.

By 2030, AI is expected to power high-quality development in China, broadening access to AI and making the intelligent economy a major growth driver.

CAICT outlines a roadmap for next-generation connectivity with commercial 6G applications around 2030 and large-scale deployment by 2035.

China’s AI policy framework, including the AI Plus initiative and a State Council plan, aims to integrate AI across six key sectors by 2027 to boost governance and rapid growth of the intelligent economy.