China Accelerates Its Digital Powerhouse, Closing in on AI Leadership
China is taking bold strides to solidify its role as a global digital and artificial intelligence powerhouse, bolstered by an unprecedented expansion in 5G networks and computing infrastructure. Rapid deployment in recent years has launched China to the world’s second-largest computing capacity, trailing only the United States.
Explosive Growth in 5G Deployments and Internet Speeds
At a recent press conference in Beijing, Liu Lehong, director of the National Data Office, revealed that the number of 5G base stations in China has surged fivefold over five years, totaling 4.55 million stations. Meanwhile, the population leveraging ultra-high-speed internet has soared to 226 million users, a massive 34-fold increase. This dramatically elevated capacity underpins expansive digital capabilities, as reported by South China Morning Post and reviewed by Alarabiya Business.
Data Economy Driving Sustained Economic Growth
Deputy Director Xia Bing emphasized China’s early yet determined efforts to develop a robust data infrastructure. The nation plans to continue constructing massive facilities while fostering a market environment conducive to digital economy growth and scientific innovation. Last year, China’s data sector, comprising approximately 400,000 companies, generated roughly 5.86 trillion yuan (~816 billion USD), marking an impressive 117% growth since the conclusion of its 13th Five-Year Plan in 2020.
Regional Industrial Ecosystems Bolster Data Power
The Yangtze River Delta, encompassing advanced cities like Shanghai, Suzhou, and Hangzhou, has emerged as a vital industrial hub. Hosting over 100,000 companies, it accounts for 22.6% of the country's total data sector output, symbolizing China's integrated approach to digital industry development.
China’s AI Computing Capacity Set to Outpace General Growth
A joint report from global firms IDC and Inspur Information projects China’s smart computing power to grow by 43% in the current year, substantially exceeding the general computing growth rate of 20%, and foresees an annual compound growth rate of 46.2% through to 2028. This trajectory underscores the intensifying technology race between Beijing and Washington.
Challenging U.S. AI Global Supremacy
In response to U.S. efforts to restrict Chinese access to advanced AI chip manufacturing tools, Chinese AI firm DeepSeek stunned the world by developing a high-performance, low-cost large language model superior to OpenAI’s ChatGPT in certain respects. This breakthrough recalibrates perceptions about China’s ascendancy in global artificial intelligence competition.