In the newly released 2025 Government Work Report of China, expected development planning in the AI field was announced. “The country will establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied artificial intelligence, and 6G technology.”
As an emerging AI powerhouse, how is China’s AI roadmap driving industrial growth and global innovation?
Open-Source AI: Leveling the Technological Playing Field
In the rapidly evolving landscape of Artificial Intelligence (AI), open-source models are emerging as powerful tools for democratizing technology and fostering global collaboration. Zhou Hongyi, a member of the Chinese People’s Political Consultative Conference (CPPCC) and founder of 360 Security Group, emphasized at this year’s Two Sessions that “open-source AI represents more than just a technological strategy—it’s a transformative approach to global innovation.”
Open-source AI challenges traditional closed ecosystems, offering a more inclusive and collaborative framework. Zhou highlighted DeepSeek, an open-source AI model, as a prime example of this shift. From an unknown entity, DeepSeek quickly became an industry standard, adopted by companies and developers worldwide. This model creates a unique ecosystem where global talent—developers, engineers, and academics—contributes to its improvement, driving what Zhou describes as a “biological big bang” of technological development.
For countries lacking financial resources and technical expertise, open-source AI provides an unprecedented opportunity to develop their own foundational models. By breaking through national boundaries and technological barriers, open-source AI fosters an inclusive innovation ecosystem where all nations can participate equally in AI development. This approach has already seen success, with major Chinese tech firms like Baidu and Tencent integrating open-source models, while international giants like NVIDIA and Microsoft have also begun adopting them.
Industrial Application: Vast Market in the Making
China’s AI industry is experiencing explosive growth, driven by a synergistic interplay of domestic innovation and global collaboration. According to the 2025 Government Work Report, China plans to increase funding for future industries, including biomanufacturing, quantum technology, embodied AI, and 6G. By September 2024, the scale of China’s core AI industry reached nearly 600 billion yuan, with over 4,500 related companies. The industry is projected to grow to 1.7 trillion yuan by 2035, with a compound annual growth rate of 15.6%.
The “AI+” strategy is cultivating new quality productive forces through cross-industry collaboration. For instance, major e-commerce and social platforms are integrating big data analysis, algorithms, and cloud computing to drive intelligent upgrading. Wu Jun, a member of the Chinese Computer Vision Expert Committee, noted that China’s AI ecosystem leverages vertical integration across foundational research, application development, and market deployment, supported by a mature industrial infrastructure.
One of the most promising applications of AI is in elderly care. With China’s aging population projected to exceed 400 million by 2035, AI-driven solutions like intelligent calling devices, personalized healthcare systems, and care robots are transforming the sector. The intelligent care robot market is expected to exceed RMB 30 billion in 2024, growing to RMB 1 trillion by 2035. China has also led the development of the first international standard for elderly care robots, setting global benchmarks for quality and usability.
Global Impact: Shaping Synergy and Governance
China’s leadership in open-source AI extends beyond its borders, fostering global cooperation and shaping international governance frameworks. In December 2023, China and Zambia co-chaired a meeting of the Group of Friends for International Cooperation on AI Capacity-building at the UN headquarters, attended by representatives from over 80 countries and UN agencies. This initiative aims to boost AI capacity building, governance, and bridge the digital divide.
China has also proposed significant global initiatives, including the Global AI Governance Initiative and the Resolution on Strengthening International Cooperation in Building AI Capabilities. These efforts align with the mission of the China-BRICS AI Development and Cooperation Center, which focuses on information exchange, technical cooperation, and governance frameworks. Xu Shan, Deputy Director of the CAICT AI Institute, emphasized that China’s progress in AI stems from a combination of domestic innovation and proactive global collaboration.
The integration of AI into global e-commerce is another area where China is making a significant impact. In Yiwu City, a global small commodity hub, AI tools like DeepSeek are revolutionizing cross-border trade. Pakistani businessman Rana Sajid, who has lived in China for over 20 years, uses AI to create multilingual promotional videos, expanding his market reach globally. China’s digital economy, the largest online retail market for 12 consecutive years, offers vast opportunities for international businesses.
By championing open-source AI and fostering international collaboration, China is not only advancing its own technological capabilities but also contributing to a more equitable and inclusive global AI ecosystem. As Zhou Hongyi aptly put it, “Open-source AI is a transformative approach to global innovation,” one that promises to bridge divides and foster a shared journey toward technological advancement.
Mr. Qaiser Nawab is a global peace activist, is a distinguished international expert specializing in the Belt and Road Initiative (BRI), Afghanistan, Central Asia and founder of the Belt and Road Initiative for Sustainable Development (BRISD), a newly established global think-tank headquartered in Islamabad, in conjunction with the one-decade celebration of BRI.
