China’s artificial intelligence (AI) sector is witnessing explosive growth, propelled by private sector investments and robust policy support.
According to recent projections, the market size of China’s AI industry is expected to soar from 29.4 billion yuan (over $4 billion) in 2024 to over 70 billion yuan by 2026.
Fueling this rapid expansion is the development of China’s cloud computing industry, a crucial backbone for AI advancement. The industry’s scale reached 309.7 billion yuan in 2023 and is anticipated to surpass 400 billion yuan in 2025, as reported by iiMedia Research.
This burgeoning infrastructure has enabled innovative startups like DeepSeek to emerge. Founded in 2023, DeepSeek has developed an AI model that operates efficiently on less powerful chips, challenging the notion that scaling AI requires massive computing power and investment.
DeepSeek’s founder, Liang Wenfeng, recently attended a high-level symposium on private enterprises in Beijing, highlighting the growing role of private companies in driving China’s AI ambitions.
With private sector investments deepening AI penetration across key sectors, China’s AI ecosystem is poised to reshape the global tech landscape, offering new opportunities for innovation and collaboration.
