China

Generative artificial intelligence (AI) is experiencing explosive growth in China, with users surpassing 602 million by December 2025. This remarkable increase of 141.7 percent from the previous year highlights the rapid integration of AI into various sectors, marking a significant milestone in China’s digital transformation journey. The penetration rate now stands at 42.8 percent, showcasing the widespread adoption of this technology.

During the 14th Five-Year Plan period, generative AI has emerged as a key driver of economic and social change in China. The government, under the leadership of Xi Jinping, has prioritized AI development, leading to a robust ecosystem of over 6,000 AI enterprises and a core industry valued at approximately $173.87 billion. China’s commitment to AI research is evident, as it now holds 60 percent of the world’s AI-related patents, reflecting its position as a global leader in this field.

As of December, China has seen a staggering rise in generative artificial intelligence users, reaching 602 milliona remarkable increase of 141.7% compared to the end of 2024. This surge highlights the rapid integration of generative AI into everyday life and various production sectors, making it a pivotal driver of digital transformation across the nation.

The China Internet Network Information Center’s recent report emphasizes how generative AI is not just a technological trend but a vital tool for small and medium-sized enterprises (SMEs). These businesses are leveraging AI to tackle challenges such as high costs and low efficiency, with some even achieving a drastic reduction in defect rates in production lines. In the first quarter of 2025 alone, 254,000 new AI software development SMEs were established, showcasing the growing enthusiasm for AI solutions.