AI giving China edge in business

Under the AI Plus initiative, China will work to effectively combine digital technologies with its manufacturing and market strengths, according to this year's Government Work Report.

China will support the extensive application of large-scale AI models, and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, the report said.

Li Haitao, dean of Cheung Kong Graduate School of Business in Beijing, said AI is profoundly reshaping the business landscape and is bound to transform various industries. Currently, China and the US have the greatest potential to lead in the next round of AI revolution, he noted.

According to Li, China boasts a large number of well-educated engineering talent and AI professionals, improved digital infrastructure such as 5G and computing networks, massive amounts of data, and ever-increasing innovation capabilities, which provide a solid foundation for the training and adoption of AI models.

The emergence of Chinese AI companies such as DeepSeek is due to the country's long-term and accumulated achievements in multiple leading fields, such as education, internet, 5G communication, digital payment, technological infrastructure and renewable energy, Li added.

China's AI sector will make big strides in the next 10 to 15 years, with its market size reaching 1.73 trillion yuan ($241 billion) by 2035, accounting for 30.6 percent of the global total, said market research company CCID Consulting.

"The recent wave of AI innovation, led by open-sourced large language models, is so encouraging that companies are quickly mobilizing themselves to harness such technologies," said Samantha Zhu, chairperson of Accenture Greater China.

She underscored that China is emerging as "an innovation-driven economy", with breakthroughs in areas like AI, robotics, renewable energy and electric vehicles, showcasing the country's growing capability in critical technologies that underpin long-term competitiveness.

The consultancy estimates that adopting a holistic approach to productivity, with generative AI acting as a multiplier, could boost productivity growth from 1.9 percent to 15.9 percent. It said China has one of the most vibrant AI ecosystems in the world, driven by a mix of enterprise adoption, tech startups and public-private partnerships.

To fully capitalize on the opportunities, multinational corporations should empower local teams to codevelop AI solutions with local partners, integrate AI into core operations and leverage China as a strategic launchpad for scalable innovation, it added.

Zhu emphasized that with more Chinese companies surveyed expecting their generative AI solutions to be adopted at scale within their organizations this year, there is strong momentum for AI-driven transformation as businesses quickly integrate it into decision-making, operations and customer engagement.