China: Core AI Industry Scale Exceeds 1 Trillion Yuan in 2025

According to the official Xinhua news agency, reporting on December 26, 2025, from the National Industry and Information Technology Conference, the scale of China's "core" artificial intelligence industry has exceeded the 1 trillion yuan mark (approximately $140 billion). This figure reflects the aggregate revenue of companies involved in algorithm development, specialized hardware manufacturing, and applied AI solutions. Reaching this milestone indicates that Beijing's strategy for accelerated digital economy development is bearing fruit, despite strict Western technological sanctions.

Representatives of the Ministry of Industry and Information Technology (MIIT) emphasized that state support for the sector will only intensify in 2026. Special focus will be placed on "smart manufacturing," autonomous transport, and creating a sovereign chip ecosystem. Analysts note that China is successfully forming a domestic market for AI consumption, reducing reliance on technology exports. The 1 trillion yuan figure serves not just as a statistic, but as a symbol of technological resilience and a signal to investors that the Chinese AI sector has reached maturity.

Source: Xinhua