Kathmandu— According to the China Academy of Information and Communications Technology (CAICT), China's artificial intelligence industry will exceed 1.2 trillion yuan ($176.7 billion) in 2025, marking a 40% increase from the previous year. The country is home to over 6,600 AI companies, representing 15% of global totals, with Beijing, Guangdong, Shanghai, Zhejiang, and Shandong leading the industry's concentration.

Industry Growth and Composition

The application segment of China’s AI industry accounted for 55% of the entire industry chain in 2025, up from 33% the previous year. This growth was driven by a significant increase in foundational infrastructure, which made up 38% of the total and grew by 59%. The models and frameworks segment, though smaller at 7%, saw an impressive 189% growth.

Regional Concentration

The AI industry is highly concentrated in a few key regions. Beijing, Guangdong, Shanghai, Zhejiang, and Shandong together account for more than 80% of the national total. These areas benefit from strong technological ecosystems, supportive government policies, and abundant investment opportunities.

Standardization Efforts

CAICT has taken a leading role in drafting two industry standards to define the AI sector and identify AI companies. These standards aim to provide unified criteria for industry statistics, policy-making, and business practices, ensuring clarity and consistency across the board.

Future Initiatives

China plans to continue advancing its 'AI Plus' initiative, which aims to promote extensive integration of AI into various sectors and fields of the economy and society. This strategic move is expected to drive further innovation and growth in the industry.

(With inputs from Xinhua)

Originally published on abcnews.com.np.