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- The artificial intelligence (AI) industry in China is a rapidly developing multi-billion dollar industry. As of 2021, the artificial intelligence market is worth about RMB 150 billion (US$23.196 billion), and that figure is projected to reach RMB 400 billion (US$61.855 billion) by 2025. The roots of China's AI development started in the late 1970s following economic reforms emphasizing science and technology as the country's primary productive force. The early stages of China's AI development were slow and faced serious challenges due to a lack of resources and talent. When China started to develop its AI industry, it had an enormous gap compared to most Western countries. A majority of the research was led by scientists who had received higher education abroad. Since 2006, China has steadily developed a national agenda for artificial intelligence development and emerged as one of the leading nations in artificial intelligence research and development. During the late 2010s, China announced in its thirteenth Five-Year Plan its aim to become a global AI leader by 2030 and to increase the worth of its AI industry to over 1 trillion RMB in the same year. China broke down this goal into three stages, setting benchmarks for 2020, 2025, and 2030 respectively, as well as releasing a handful of policies, including 'Internet + AI' and 'New Generation AI Development Plan', to incentivize industry growth. Analysts estimated that China's AI development would contribute an annual growth rate of approximately 0.8% to 1.4% to China's economy. China's central government has a list of "national AI teams" including fifteen China-based companies, including Baidu, Tencent, Alibaba, SenseTime, and iFlytek. Each company is supposed to lead the development of a designated specialized AI sector in China, such as facial recognition, software/hardware, and voice intelligence. China's rapid AI development has significantly impacted Chinese society in many areas, including the socio-economic, military, and political spheres. Agriculture, transportation, accommodation and food services, and manufacturing are the top industries that would be the most impacted by further AI deployment. At the same time, scholars have warned of potential negative impacts on China's labor market and disproportionate benefits between urban and rural areas, coastal and inland regions, and among different income groups. Strengthening the nation's military power is another major factor for countries, including China, to engage in global competition for AI leadership. The private sector, university laboratories, and the military are working collaboratively in many aspects as there are few current existing boundaries. As China continues expanding its AI industry, there are ethical and regulatory concerns yet to be addressed, such as data control and user privacy. In 2021, China published its first national law addressing AI-related ethical concerns, the Data Security Law of the People's Republic of China. In October 2022, the United States federal government announced a series of export controls and trade restrictions intended to restrict China's access to advanced computer chips for AI applications. (en)
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