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Chinese government enterprises invest heavily in AI industry to beat the United States to lead the world in artificial intelligence
According to a report from the *Financial Times*, China is determined to emerge as the world’s leading AI superpower in the global race for artificial intelligence. While the U.S. National Science Foundation has not increased its funding this year, China has pledged to leverage both government and private capital to drive innovation in the sector.
U.S. and Chinese tech companies are pouring massive resources into AI research, but China’s ambitious plan to build a $150 billion AI industry by 2030 signals its intent to outpace the U.S. in this critical field. Many experts agree that China’s growing influence in AI cannot be ignored.
Kaifu Li, a prominent figure in tech innovation, believes that achieving dominance by 2030 may seem optimistic, but he highlights several key advantages China possesses: a vast population, abundant data, a strong talent pool, and even a high volume of code being written daily. With over 730 million internet users—nearly double the U.S. number—China has a massive user base that is highly tech-savvy. This gives it a unique advantage in testing and developing AI applications at scale.
Moreover, China’s mobile ecosystem is far more advanced than many other countries, allowing for rapid experimentation with AI-driven services. In contrast, the U.S. tends to develop these technologies at a slower pace. The sheer volume of data generated by Chinese consumers also plays a crucial role, as data is the backbone of AI systems, from self-driving cars to personalized e-commerce recommendations.
The three major tech giants—Baidu, Alibaba, and Tencent (BAT)—have amassed enormous amounts of user data through their popular platforms. They know what people buy, where they travel, and who they communicate with, making them powerful players in the AI space.
In terms of financial investment, China is outpacing the U.S., which has been reducing its AI budget. James Lewis, a senior fellow at the Center for Strategic and International Studies, noted that while the U.S. invests millions, China is investing billions, creating a significant gap in resources. Even if China's efficiency is only half that of the U.S., its investment power is still five times greater.
China is also improving its approach to AI investment, shifting focus toward private companies that are more agile and capable of delivering real-world products. The government has recognized AI as a national strategic priority, aiming to gain a competitive edge in the global AI landscape and enhance national security.
Despite its progress, China still faces challenges, particularly in talent. A LinkedIn survey found that only 50,000 people in China work in AI-related fields, compared to 850,000 in the U.S. To bridge this gap, the country is actively recruiting overseas talents, including returnees like Lu Qi, who now holds a top position at Baidu.
While some argue that China’s AI development could eventually rival the U.S., others caution that the core technologies are still largely controlled by global tech giants like Google, Facebook, Microsoft, and Amazon. Kai-fu Lee questions whether a few dominant players will monopolize AI, leaving others with only minor opportunities.
In any case, China remains committed to becoming a leader in AI, investing heavily in both capital and policy. Recent academic reports show that China has surpassed the EU in the number of AI research papers published, signaling its growing influence in the field. However, the quality of basic research still lags behind the EU, though it recently overtook the U.S. in highly cited papers.
As the AI race intensifies, China’s strategy continues to evolve, blending public and private efforts to secure a dominant position on the global stage.