Graphics: How is China's private sector boosting AI growth?

China's artificial intelligence (AI) sector is experiencing explosive growth fueled by private sector investments and strong policy support.

The sector's market size is projected to increase from 29.4 billion yuan (over $4 billion) in 2024 to over 70 billion yuan by 2026.

Facilitating this rapid expansion is the development of China's cloud computing industry, which is a critical backbone for AI development. The scale of the country's cloud computing industry stood at 309.7 billion yuan in 2023 and is expected to surpass 400 billion yuan in 2025, according to iiMedia Research.

This infrastructure has enabled Chinese startups like DeepSeek to innovate cost-effective AI models that challenge conventional wisdom.

Founded in 2023, DeepSeek has developed an AI model that operates efficiently on less powerful chips, debunking the idea that scaling AI requires massive computing power and investment. Its founder, Liang Wenfeng, recently attended a high-level symposium on private enterprises in Beijing, which highlighted 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.