Just a moment...

The outlook for China's AI industry highlights its leading role in the global race, especially after DeepSeek-R1 emerged as a strong competitor to OpenAI's models. While much debate centers on chip export controls and model intelligence, commercial AI applications in China deserve more attention. Key uses range from lighthearted AI avatars in live-stream e-commerce to serious applications like generative AI enhancing factory robotics and supply chains. Chinese electric vehicles widely incorporate automated driving systems, and robotaxis are being tested in major cities. Despite different legal systems, AI applications in China and the US are fundamentally similar—both rely on coding assistant tools as the most adopted use case, and professionals like lawyers benefit from generative AI regardless of location. Industries with large, high-quality datasets—such as software development, call centers (with decades of recorded calls), and manufacturing (China has the most factories globally)—are best positioned for AI adoption. Ultimately, companies in China, like elsewhere, focus AI on profitability, whether through cost reduction or new revenue streams, making AI a key productivity enhancer across the tech ecosystem.