China AI industry expansion

China is leveraging nationwide capabilities to build a locally tailored but nationally coordinated AI industry landscape, aiming to accelerate commercial deployment and create new economic momentum. The latest economic data from 31 provincial-level regions shows surging demand for AI terminal applications and a tiered development layout based on regional advantages. China's intelligent computing capacity reached 2,185 EFLOPS by the end of June, up 177% year-on-year, with a national utilization rate of 71.4%, according to the China — Ministry of Industry and Information Technology. China — Beijing, China — Shanghai, and China — Guangdong are leading in building indigenous AI ecosystems, targeting 'global AI competitiveness' in their 2026-2030 five-year plans. Other regions are developing specialized tracks: China — Anhui focuses on AI chips, with Nexchip and Yangtze Memory Technologies going public; China — Hubei leverages its optoelectronics industry; China — Henan is transforming into a computing power hub; and China — Xinjiang, China — Inner Mongolia, and China — Guizhou use clean energy for intelligent computing centers. The Lichuan AI Computing Center in China — Hubei exemplifies how natural advantages support AI development, providing 150 PFLOPS of computing power with over 80% utilization, and supporting local industries including tourism. The government is promoting high-quality computing infrastructure and a national monitoring system.