Written by Krzysztof Karwowski, Julia Lasiota
In short:
- The Chinese digital ecosystem (AI, applications, blockchain techniques, net of Things – IoT) has grown into 1 of the most dynamic in the world, and its improvement increasingly goes beyond the borders of the country.
- Key hubs for the improvement of digital technologies are the capital – Beijing and the rich cities of the south – Shanghai, Shenzhen and Hangzhou. Key players include corporations: Huawei or Alibaba, as well as start-ups – DeepSeek or BrainCo.
- The Chinese AI industry, the net of Things and Digital Services supports both the availability of funds and a favourable state policy. However, it may be hampered by the marketplace for processors, the sanctions of Western countries and uncertainty as to the safety of data operating in Chinese infrastructure and programmes.
The importance of artificial intelligence in global technological competition
Artificial Intelligence (AI) has become 1 of the key fields of global technological competition, going far beyond the field of purely engineering innovation and becoming the foundation of modern politics, economy and science. Its importance extends from the issue of safety – both internal, information control and social order – and international, where the AI shapes defence strategies, cybersecurity and the balance of forces – to the economical dimension in which it decides on the competitiveness of industries, the pace of automation and the ability of states to make fresh sources of profit. At the same time, it is simply a driving force for technological and technological development, beginning the space for investigation at the interface of many disciplines, ranging from medicine and biology to astrophysics and space exploration. As a result, artificial intelligence not only reflects the current ambitions of global powers, but besides defines the perspectives of their future position in the global power strategy [1, 2].
States' efforts to make artificial intelligence include a complex combination of investments in technologies, application areas and circumstantial techniques to guarantee an advantage in this dynamic field. On the 1 hand, this means building computing infrastructure – from powerful supercomputers to advanced integrated circuits capable of supporting models of unprecedented scale – as well as developing a data ecosystem that provides the basis for algorithm training. On the another hand, the state invests heavy in strategical areas specified as defence and security, medicine and biotechnology, intelligent mobility or space technologies, treating the AI as an acceleration of advancement in sectors considered crucial for future dominance. Russia's full-scale aggression against Ukraine has clearly shown how vastly modern digital technologies have changed knowing and action in the battlefield [3, 4]. Finally, these efforts besides focus on algorithms themselves: from deep learning and processing of natural language, through distributed systems to investigation on general synthetic intelligence. In this way, states not only make tools but besides form the conditions for the creation of a full branch of a fresh smart economy [5].
Institutional and political framework
In the Chinese political system, artificial intelligence has been placed at a crucial intersection of economic, regulatory and state safety strategies. The State Council, the highest decision-making body of the People's Republic of China, considers AI to be a breakthrough technology capable of both supporting industrial modernisation and strengthening defence and interior control.
Already in 2017, "Next Generation Artificial Intelligence improvement Plan" was announced, which gave direction to the improvement of AI investigation and applications, setting out the ambition to make China a global leader in this area by 2030. Institutions specified as the Ministry of manufacture and Information Technology (MIIT), which are liable for developing digital infrastructure, stimulating and subsidising key engineering and technology projects and base technologies, and the National Cybersecurity Commission, which integrates data safety and digital infrastructure stableness issues [7], are active in the strategical objectives.
Artificial intelligence is besides included in a broader economical planning framework, from the Made in China 2025 strategy, focusing on modernisation and modernisation of industry, to the 14th five-year plan [8], which stresses the function of digital technologies as key drivers of growth. In this context, AI is not just an innovation tool, but part of an overall state task combining an economical modernisation imagination with the request for control and safety [8-10].
In addition to national policies, implemented regional strategies and policies are besides important. The contribution of Chinese provinces is concentrated in 4 regions: Beijing, Shanghai, Guangdong, Zhejiang [9, 11].
Beijing is the centre of basic investigation and talent improvement in AI. The capital houses leading universities, investigation institutes and office of the largest technology companies investing in AI, specified as Baidu and Xiaomi. The city plays the function of an innovation policy laboratory at the highest, state-wide level – it focuses on the integration of AI with national security, large date and public administration. Shanghai – the main business center of the country – serves as a commercial hub. Local authorities powerfully support the improvement of technology parks and test zones for smart mobility, robotics, satellite systems and wellness care. The city focuses on creating complete AI value chains – from physical components (chips, servers, data banks) through algorithms to applications in urban manufacture and services, which is part of the imagination of Shanghai – the intelligent city of the future. Guangdong – the most populous and richest of Chinese provinces – with the centre in Canton and an economical heart in Shenzhen, is the cradle of industrial and commercial applications. Thanks to the presence of specified giants as BYD, Tencent or DJI, the region focuses on the integration of AI into the automotive sector, consumer electronics and drones, as well as the implementation of solutions in industrial production. The last state in question is Zhejiang – a coastal region around the city of Hangzhou. It is simply a hub for innovation in e-commerce and digital services. This is where Alibaba and Ant Group operate, which make AI algorithms for e-commerce, logistics, fintech and cloud services. The state is besides active in training talent for the digital economy, and has the largest number of smart cities – apart from the capital, smart solutions are implemented in cities specified as Ningbo, Taizhou, Wenzhou, Shaoxing and their agglomerations [5]. Due to the favourable economical environment for innovative investments, the state is home to a number of start-ups called collectively and in various configurations “dragons and tigers from Hangzhou” [12, 13].
Key actors in the AI sector
1. National and state-private players
IFLYTEK (科大讯飞) – specializes in speech designation and processing of natural language; develops translation systems, voice assistants, educational technologies and solutions and algorithms for administration (documentation management, translation, language-text processing) [14].
Hikvision (杭州海康威视数) – camera and surveillance software manufacturer, planet leader in video surveillance and AI-based image analysis (AIoT-based artificial intelligence of things); its technologies are utilized for facial recognition, behaviour analysis and access control, both in civilian and police applications [15].
CETC (China Electronics Technology Group Corporation, 中国电子科技集团公司) is simply a state-run defence and technology conglomerate that develops AI solutions for the military, cyber safety and strategical infrastructure; a key supplier of electronic designation and data analysis systems. It equips Chinese intelligence satellite constellations [16, 17].
2. Private sector and start-ups
Deepseek (深度求索) – a investigation and commercial company that optimises artificial intelligence models, known for creating advanced performance solutions on older GPU systems; its projects focus on AI availability for smaller companies and investigation institutions (R&D) [18, 19, 21].
Baidu (百度) is simply a pioneer in net search engines, Baidu search engine operator, portals and services (e.g. Baidu Maps, Google Map equivalent) and language models development; it develops its own Ernie Bot system, image processing technologies, autonomous mobility platform [20].
Alibaba (阿里巴巴集团) – 1 of the largest Chinese private companies. Giant e-commerce industry. It focuses on AI applications in electronic commerce, logistics and cloud computing (Alibaba Cloud); it develops generic models and tools for consumer behaviour analysis. Applications for marketing, business (e-commerce), educational (Alibaba Business School) [22, 23].
Tencent (腾讯) – the operator of the popular WeChat app, the game mogul and IT; uses AI in games, social media and financial services; its investigation laboratories make recommending technologies, image designation and artificial avatars [23], 24].
Huawei 华为 (AI LABS – by Huawei itself named Noah’s Ark AI Labs or AIIA) – is researching the integration of AI with network infrastructure under the wings of Huawei’s parent company – the largest Chinese supplier of consumer electronics, IoT, telecommunications and industrial systems. It explores solutions for communication between smartphones, mobile devices and their networks; it develops its own computing systems (Ascend) and the MindSpore framework, supporting an AI ecosystem independent of the West [25].
Other leading start-ups: Unitree, Manycore Tech, BrainCo, Minimax, Netease [12].
3. investigation institutes and universities
Tsinghua University (清华大学) Beijing is considered the most crucial investigation centre for artificial intelligence in China, combining academic prestige with a direct impact on the state's innovation policy. Education of both political leaders (current and erstwhile Secretary General of the Communist organization are its graduates) and engineers. It is there that work is being carried out on device learning, recognizing images and natural language, as well as integrating AI into medicine, energy and robotics. Tsinghua is distinguished not only as a talent forge and a global publication center, but besides as a university highly well connected with abroad investigation centres – its staff and graduates cooperate with MIT, Stanford, the Korean KAIST Institute or centres in Europe (Belgian KUL in Leuven, ETH in Zurich or the Delphin method University – TU Delft), making it a bridge between Chinese ambitions and the global ecosystem of AI sciences [21, 26]. In 2024, the university set up the first, comprehensive entity – the College of AI (College of AI) covering its activities with undergraduate, master's and doctoral education, basic research, applied and implementation, and marketing and promotion of AI applications [27].
University of Beijing (北京大学/北大 – typically Beijing or BeiDa) founded in 1898 and being 1 of China's oldest and most prestigious academic centers, plays an crucial function in the improvement of artificial intelligence, especially in the fields of basic and interdisciplinary research. His AI laboratories focus on mathematical and theoretical foundations of device learning, as well as on applications in social sciences, medicine, or data analysis. Personnel “Peking” participated in the establishment of specified AI centers as the CASIA Institute and the Beijing Institute of General Artificial Intelligence (BIGAI) [28, 31].
CASIA (北京自动化研究所, Chinese Academy of Sciences Institute of Automation) – The Institute of Automation of the Chinese Academy of Sciences is chronologically the first centre conducting investigation on contemporary AI in China. Due to the engineering nature of the institution, his investigation focuses on the applicable implementation of the foundations developed by the universities of BeiDa and Tsinghua. abroad reports indicate crucial cooperation between CASIA and the Chinese People's Liberation Army and Intelligence [30].
Zhejiang University (浙江大学 or ZJU) in Hangzhou is simply a university whose investigation is generously funded by technology giants – Alibaba, Baidu, Unitree [5]. From this university comes Deepseek engineering staff. ZJU is celebrated for its high-quality education and for its applicable training effect mainly in areas specified as information technology, software engineering or large data management [26, 29].
National Defence Technology University of the People's Liberation Army (中国人民解放军国防科技大学 or NUDT) is located in Changsha in central China (Hunan Province). It is simply a mysterious university, the equivalent of the Polish Military method Academy or the French École polytechnique, and it was modeled at these universities. The university is simply a leading supplier of human resources and solutions for Chinese armed forces, besides oversees the Chinese ecosystem of investigation in the fields of supercomputerization, quantum computing and intelligence and spy systems. Apart from the main campus in Changsha, it besides has laboratory centers in Wuxi (Jiangsu), Mianyangu (Sychuan), Canton (Guangdong) or Tiencin (Tianjin) [32, 33].
Other key investigation institutions include: Shanghai University Jiao Tong (上海交通大学), Harbinian Institute of Technology (哈尔滨工业大学), Canton Technology Institute (广东工业大学), Beijing University of Aviation and Space Beihang (北京航天航空大学/北航), Institute of Computer Technology Academy of Sciences in Beijing is West Lake University in Hangzhou (西河大学) [26].
Photo 1. The Cantonese Institute of Technology campus, Guangzhou Higher Education Mega Centre, Canton, China (Photo K. Karwowski)
AI infrastructure and data ecosystem (Supercomputers and data clusters)
Calculation capacity China implements and coordinates the National Supercomputing Centre (NSCC, 国家超级计算天津中心) in high-performance computer engineering – a squad of centres and specialists spread across the country. Individual branches – primarily in Tiencin (Tianjin), Canton and Wuxi – plan and usage any of the fastest computing clusters in the planet called supercomputers for investigation and engineering purposes. Table 1. shows the most crucial centres, their strongest and recently built clusters [23], 34].
Table 1. The largest supercomputers operating and building in China
| Name | Affiliation | City, Province | Manufacturer | Year of activation | Power [PFLOPS] |
| Sunway OceanLight | NSCC Wuxi, NUDT | Wuxi, Jiangsu | Unknown | Construction | > 1,500? |
| Tianhe 3 | Tianjin University, NSCC Tianjin, NUDT | Tiancin (Tianjin) | Unknown | 2024 | 1500-2000? |
| Sunway TaihuLight | NSCC Wuxi, NUDT | Wuxi, Jiangsu | Sunway | 2016 | 93,00 |
| Tianhe-2A | NSCC Guangzhou, NUDT | Canton, Guangzhou | Intel | 2018 | 61,30 |
| ACS (PreE) | Sagon | Beijing | Sagon | 2018 | 4,33 |
| MagicCube I/II/III | Jiao Tong University, Shanghai Supercomputing Centre | Shanghai | Lenovo | 2021 | 3.66 |
| Geely Wise Star-Dubhe | Geely car Group | Beijing | Lenovo | 2023 | 3,53 |
Written by: Institute of fresh Europe [34-37]
Photo 2. Cantonese National Supercomputing Center – office of the Tianhe 2. Guangzhou Higher Education Mega Centre, Canton, China (Photo K. Karwowski)
Roles of Companies Like Huawei Cloud, Baidu Cloud [35, 36]
The improvement of AI in China is closely linked to the expansion of computing infrastructure and the activity of major technology companies specified as Huawei and Baidu. American dominance in the cloud services marketplace has led to cloud computing capacity improvement through their subsidies specified as Baidu Cloud, Huawei Cloud, etc. Both corporations play a key function in the construction of the national AI ecosystem, providing platforms, data centres and training tools for large language models (LLMs) and analytical systems [12, 26]. Their efforts are part of the strategical programme "Eastern Data, Western Computing" (eastern Data, Western Computerization), which assumes the creation of immense computing clusters, mainly in the western, seldom populated regions of China, while utilizing data generated on the coast (rich east provinces). This strategy aims not only to balance regional development, reduce the energy overload of east metropolises and shift industrial burden into Chinese interiors, but besides to supply a solid infrastructure base for the further improvement of artificial intelligence, the net of Things and the data-based economy [36].
Access and data policy
One of the key elements of the Chinese AI ecosystem is wide access to data and the improvement of uniform standards for their collection, processing and use. The infrastructure of smart cities specified as Shenzhen and Taizhou (the Zhejiang Province) is simply a central component in this process – the network of sensors, cameras and IoT devices make real-time data streams, creating unique conditions for training and implementing algorithms and the net of Things (IoT, net of Things). The improvement of 5G technology, in which China is leading, allowing fast transmission of advanced capacity data, has become the basis for infrastructure and the pillar of the improvement of analytical systems. Biometric and monitoring data collections are of peculiar importance, which, despite the controversy over privacy, supply an exceptional scale and precision in observing social behaviour and managing urban traffic [38-40]
Table 2. Smart city infrastructure (e.g. Shenzhen, Hangzhou) – examples
| City | Examples of technology use | Links to public policy | Year |
| Tiancin (Tianjin) | Smart port and industrial zone, logistics automation, digital transport management systems | Stategia for Binhai region "National fresh Area Strategy" | 2015 |
| Suzhou, Jiangsu | Industrial net of Things, intelligent technology parks, transport management | ‘Made in China 2025’ | 2016 |
| Hangzhou, Zhejiang | "City Brain" traffic management strategy developed by Alibaba; video analysis, public and car transport optimization. | Internet Plus and Digital China | 2016 |
| Shenzhen, Guangdong | 5G network integration, urban monitoring systems, smart energy management and street safety | “Smart City Cluster” strategy for Pearl River Delta, Made in China 2025 | 2017 |
| Shanghai | Smart container port handling, digital spatial planning, environmental monitoring and transport | "Shanghai AI Innovation Strategy", Made in China 2025 | 2017 |
| Beijing (Capital Region) | Urban data platform, transport management, smart buildings, e-government and central | "Beijing Municipal AI improvement Plan" | 2018 |
| Wuhan, Hubei | Big platforms date in public wellness and safety protection, epidemic prevention systems (example: Covid pandemic-19) | "Healthy China 2030", “Digital China” | 2018 |
| Canton, Guangdong | IoT solutions in logistics and municipal waste, metro coordination, traffic management | "Smart City Cluster" strategy for Pearl River Delta | 2018 |
| Xiong’an, Hebei | Comprehensive smart city infrastructure built from scratch, transport management, water and energy, model city AI | Millennium Plan task supervised by the State Council, Beijing Olympic Games 2022 | 2018 |
| Chong qing | Industrial data integration, smart factories, environmental monitoring and wheeled transport | "Western improvement Strategy", east Data, Western Computing | 2019 |
Written by: Institute of fresh Europe [36-42]
Applications AI [43-45]
Examples:
Industry (automation, robotics, logistics) – AI optimizes production processes, predicts device failures, manages supply chains and warehouses, supports robots cooperating with people. It besides enables real-time data analysis, expanding efficiency and reducing operating costs of business processes.
Society (surveillance, social coordination, education) – AI systems support analysis of data from cameras and social networks to monitor behaviour and measure the credibility of citizens. In education, they aid to personalize teaching, measure advancement and make smart assistants.
Armed forces and safety (image recognition, command support, electronic combat, satellite image processing) – AI analyses intelligence, recognizes targets based on images from drones and satellites, supports mission planning and anticipates threats. It besides supports cyber defence and field simulations. The improvement of algorithms in this substance constitutes an crucial breakthrough in the conduct of cyber warfare and widely understood cybersecurity activities.
Autonomous cars – AI is liable for environment perception, way planning and real-time decision making. It uses camera data to guarantee safety of driving and communication with another vehicles. China is presently the fastest increasing marketplace for electrical cars and is most dynamically implementing autonomous transport technology.
Conclusions, barriers and challenges
The Chinese digital ecosystem (AI, applications, blockchain techniques, the net of Things) has grown into 1 of the most dynamic in the world, and its improvement increasingly goes beyond national borders.
Under the Digital Silk Road initiative, which is the technological arm of the fresh Silk Road (Belt & Road Initiative), China promotes its digital solutions, telecommunications infrastructure and AI standards in central and east Asia, Africa and Latin America. This cooperation is both economical and political – it builds a network of dependencies based on access to data, cloud technologies and the compatibility of ICT equipment. This gives emergence to both opportunities for the wider global south, peculiarly for countries that cannot afford Western solutions and questions about China's access to these markets, their independency from Chinese operators and technology and the price paid in exchange for these solutions.
Despite their ambition, the question remains whether China is able to gain a lasting advantage in selected AI segments, specified as natural language processing, image designation or military applications. On the 1 hand, they have immense data resources, strong state support and increasing investigation facilities, on the another hand, they face severe technological constraints, due to Western sanctions, an embargo on the export of advanced chips, and the deficiency of access to the latest GPUs needed to train large-scale models – Taiwan issue, dependence on American manufacturers and technologies (NVidia, ARM, ASML, problems with Chinese components like Huawei Ascend processors) [44-46].
An additional challenge is the increasing global opposition to Chinese standards of supervision and privacy protection, which rise concerns about exports of the "digital authoritarian model". As a result, while China can accomplish dominance in circumstantial niches – especially where AI supports decently prepared and/or constructed/modified Chinese infrastructure, logistics or administration – their global expansion inactive faces political, regulatory and image constraints.
Observers and analysts stay waiting for the end of October 2025, erstwhile this will be published a fresh – 15th Five-Year Plan. The China Communist organization Plenary (KPC) will present on 20-24 October and then adopt this very crucial paper indicating the direction of improvement of China's economy for the next 5 years (date of submission of Article 21.10.2025).
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