APEC 2026: Can AI become a new engine of Asia-Pacific economic growth?

Editor's Note: Zhang Jing is the editor-in-chief at the Maclmlen Studio. The opinions expressed in this article are of the author, and not necessarily those of CGTN.

As China prepares to host the 2026 Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Shenzhen on November 18–19, artificial intelligence is emerging as a major topic in discussions about regional economic growth, investment and technological cooperation.

Amid intensifying global technological competition, AI is moving beyond research laboratories and consumer applications into manufacturing, financial services, logistics and other industries. For APEC economies, the challenge is not simply developing more powerful AI systems, but translating technological advances into higher productivity, sustainable investment and broader economic opportunities.

Shenzhen, one of China's major technology and manufacturing hubs, provides a significant setting for these discussions. Its electronics, telecommunications, robotics and advanced manufacturing industries illustrate the growing connection between AI innovation and industrial transformation.

The economic stakes are substantial. According to the APEC Secretariat, the region's economy is projected to grow by 3.4% in 2026, compared with 3.2% in 2025. However, inflationary pressures, trade uncertainty and uneven technological readiness continue to complicate the outlook.

With 21 economies representing more than 60% of global GDP, APEC offers an important platform for examining whether emerging technologies can help sustain regional growth.

AI cooperation has become part of APEC's longer-term agenda. The APEC Artificial Intelligence Initiative (2026–2030) provides a framework for promoting innovation, capacity building and wider adoption.

At the APEC Digital and AI Ministerial Meeting in Chengdu in July 2026, participating economies emphasized digital infrastructure, skills development, trusted digital environments and practical applications as important areas for regional cooperation.

These priorities reflect a central economic question: how can AI innovation translate into productivity gains that benefit businesses and economies across the Asia-Pacific?

The issue was also discussed at SAAS NORTH AI 2026, held in Ottawa, Canada, on November 4 and 5, where technology entrepreneurs and investors examined the commercial opportunities and challenges created by AI.

In an interview at the conference, Tina Kung, co-founder and chief technology officer of Nue, highlighted the complementary strengths of different APEC economies.

She pointed to China's capabilities in AI infrastructure, large-scale deployment and industrial applications, alongside North America's strengths in foundational models, enterprise software and technology entrepreneurship.

Looking ahead, she emphasized the importance of international cooperation. "What I like to see and I hope to see is that we do more cross-border collaboration and also interoperability."

She explained that China, North America and other Asia-Pacific economies could combine their strengths, build partnerships and reduce barriers, creating opportunities for both large corporations and smaller businesses.

She also identified autonomous AI agents as a promising tool for improving business productivity. By automating routine tasks and supporting daily operations, these systems could help small businesses devote more time to customers, partnerships and growth.

For smaller enterprises, the economic value of AI may lie less in developing proprietary models than in adopting affordable applications. Automated customer support, inventory management, accounting and market analysis could reduce operating costs and allow businesses to compete more effectively.

Yet these benefits are not guaranteed. Smaller companies often face constraints involving digital skills, implementation costs and access to reliable data. Without targeted training and affordable technology, AI adoption could widen productivity differences between large corporations and smaller firms.

The expansion of AI also depends on the physical infrastructure required to support increasingly sophisticated systems.

Advanced AI models require substantial computing power, semiconductors, high-speed interconnections, data centers and reliable electricity supplies. Rising demand is creating investment opportunities while exposing bottlenecks in global technology supply chains.

At SAAS NORTH AI, Albert Chen, partner at Two Small Fish Ventures, identified computing hardware and physical AI as two areas with significant growth potential.

Chen highlighted the importance of the computing hardware ecosystem, including semiconductors, photonic systems, interconnects and distributed computing infrastructure. He described hardware limitations as a constraint on advanced AI capabilities.

He also pointed to the rapid growth of physical AI, including robotics and autonomous systems, and China's progress in manufacturing and related supply chains.

Rather than viewing AI development as a competition in which only one economy can succeed, Chen emphasized cooperation. "I don't think it's a winner takes all. I think we need to collaborate better and foster a nation-to-nation collaboration on this and have less barriers."

His observations suggest that the next phase of AI growth may depend as much on manufacturing capacity and hardware deployment as on breakthroughs in algorithms and software.

Investment in AI infrastructure could generate demand across several industries, from semiconductor manufacturing and electrical equipment to construction and energy systems. However, the economic returns will depend on whether infrastructure spending supports commercially viable applications and lasting productivity improvements.

For Canada, these developments present opportunities to combine its strengths in AI research, software development, energy resources and clean electricity with international manufacturing and technology supply chains.

China's extensive electronics manufacturing ecosystem and expanding industrial AI applications could offer opportunities for cooperation in robotics, intelligent manufacturing and energy management.

Chen also expressed interest in investing in companies capable of operating across borders and connecting technology development with manufacturing and commercial markets.

Nevertheless, advanced semiconductor export controls, intellectual property protection, data security and investment restrictions remain important challenges for international technology partnerships.

These issues highlight APEC's role as a platform for economic dialogue at a time when technological competition and differing regulatory approaches are reshaping the AI industry.

The broader economic relationship between Canada and China provides another dimension to discussions surrounding APEC 2026.

At a reception hosted by the Chinese Embassy in Canada to celebrate the 77th anniversary of the founding of the People's Republic of China, Kody Blois, parliamentary secretary to the Prime Minister of Canada, discussed China's hosting of APEC and opportunities for bilateral economic engagement.

Blois highlighted opportunities for Canadian consumer brands in China's growing middle-class market. He emphasized the importance of strengthening Canadian companies' commercial presence in China while encouraging Chinese investors to explore opportunities in Canada.

Although his remarks focused on trade and investment rather than AI specifically, they reflect the wider economic context in which discussions about emerging technologies are taking place.

For Canadian businesses, AI could support international expansion by improving manufacturing efficiency, logistics, market analysis and cross-border digital services.

Digital trade offers another potential source of productivity growth. APEC research suggests that digitalizing trade documents could reduce trade transaction costs by approximately 5.8%. More efficient documentation, customs procedures and information exchange could particularly benefit smaller exporters with limited administrative resources.

The APEC CEO Summit, scheduled for November 17–18 in Shenzhen, will provide an additional opportunity for business leaders to discuss AI, digital commerce and regional economic integration.

Beyond commercial applications, AI governance will remain an important consideration. Data protection, cybersecurity, intellectual property and differences in national regulatory approaches can influence companies' ability to develop and deploy AI technologies internationally.

While APEC does not establish binding AI regulations for its members, its cooperative framework can facilitate policy exchanges, capacity building and discussions on practical challenges.

A further challenge is ensuring that AI adoption produces inclusive growth. Economies with advanced digital infrastructure may capture benefits more quickly, while those facing financing and skills shortages risk falling behind. Regional cooperation on training, technical standards and access to digital services could help narrow these gaps.

As APEC leaders gather in Shenzhen, a central question will be whether regional cooperation can help transform AI innovation into measurable productivity gains, sustainable investment and broader business opportunities.

For the Asia-Pacific, the economic impact of AI will ultimately depend not only on technological breakthroughs, but also on how effectively economies combine their strengths, reduce barriers and turn innovation into practical growth.