China’s AI Industry: Expected to Reach $170 Billion by 2025

# Avinash Sharma

Beijing – The scale of China’s core artificial intelligence (AI) industry is expected to exceed 1.2 trillion yuan (approximately $170 billion) next year, according to an estimate by a research institute under the Ministry of Industry and Information Technology.

The China Academy of Information and Communications Technology (CAICT) stated at a recent industry forum in Beijing that AI technology has reached a pivotal turning point and is accelerating its shift from technical innovation to generating tangible productive forces.

According to the institute, significant upgrades have been made in large AI models this year. Their language understanding capability has improved by 30 percent, while their multimodal understanding capability has increased by 50 percent.

The field of ’embodied intelligence,’ which integrates AI with robotics, has also seen rapid expansion. This sector has secured over 40 billion yuan in financing, with more than 350 companies involved across its industrial chain.

Beyond AI, CAICT also presented a roadmap for next-generation connectivity at the event. The institute estimates that China will launch commercial 6G applications by 2030, with large-scale deployment expected by 2035.

This projection for China’s AI industry signals the country’s substantial investment and strategic prioritization of this sector. It’s not just about the figures; the notable improvement in the quality of AI models indicates the technology’s maturation. The investment and participation in ’embodied intelligence’ highlight China’s focus on connecting AI to the physical world and industries.

Furthermore, the provided timeline for 6G demonstrates China’s ambition to play a leading role not only in current technologies but also in future telecommunications standards. This will define China’s global competitiveness in the technological landscape of the future.