How China’s New AI Strategy is Set to Transform Industries

Not to be left behind in the race toward progress, China is aggressively executing its ambitious artificial intelligence (AI) strategy that is set to induce disruptive changes across numerous industries.

Boasting strong support from the government, an increasingly crowded ecosystem of innovators, and a clear plan for the future, the country is steaming ahead to become a world-beater in AI.

China’s strategic plan, laid out in the Next-Generation Artificial Intelligence Development Plan (which you can read here in English and here in Chinese), sets a goal for China to become the world’s premiere AI innovation center by 2030.

This means making world-top theoretical breakthroughs by 2025 and putting AI to work from the factory floor to the hospital ward. Recent developments and policy actions confirm that this vision is fast materialising.

The widespread use of giant AI models has long been central to China’s ambitions, especially for manufacturing. The “AI Plus” plan, unveiled in the government’s work report last month, represents an emphasis of combining digital technology with China’s decade-strong manufacturing prowess.

This effort will roll out new-generation intelligent terminals and smart manufacturing equipment, to promote efficiency and productivity, while upgrading the industry overall.

The effects of AI are currently experienced across multiple sectors. In medicine, as well, AI is deployed for medical imaging, diagnostics, and drug development, enhancing patient care and expediting pharmaceutical innovation.

The automotive sector is ramping up on AI-driven autonomous driving solutions, as Chinese companies are fast launching and implementing ADAS technologies and level 4 cars. AI is also streamlining operations in logistics, retail and agriculture so they can operate more efficiently and make better use of resources.

China’s ambition of creating an open, collaborative ecosystem for AI is only adding to its speed. The rise of the no-cost, open source AI like DeepSeek, is helping democratize the power of AI, enabling startups and researchers to create without some massive $2M GPU array. This democratization of AI is enabling the broad adoption and integration of AI throughout industries.

China already has a sizeable AI industry that reached more than USD 70 billion in 2024, and is expected to continue to grow at an exponential rate. This is a growing market that provides great opportunities for Chinese and international businesses that aim to innovate and grow with the help of AI.

More and more international businesses are cooperating with Chinese AI companies to delve into this vibrant environment and integrate modern AI applications with their business.

Even as concerns over data security and ethical implications continue to be a vital part of AI advancement, China’s aggressive stance and heavy investment are indicative of an unmistakable trajectory toward an AI-powered future which is set to transform industries and spur major economic expansion. The world is watching and this is China’s AI strategy in real-time which could provide a template for global industrial transformation.