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Comprehensive Advancement of the Development & Empowerment of AI Applications

Nov 01-2025   



*This article is based on an article from Huang Zhuo, Deputy Dean and Professor at PKU NSD, Dean of BiMBA Business School, and Zhou Ding, Assistant Director of the Think Tank Centre at PKU Changsha Institute of Computing and Digital Economy.

 

Seizing Major Strategic Opportunities

Comprehensively advancing AI development and application is crucial for reshaping industrial ecosystems and driving high-quality socio-economic growth. On the one hand, AI technology is deeply integrated into industrial innovation and development through the "AI Plus" initiative, accelerating the digital and intelligent transformation of traditional industries and achieving a structural leap in total factor productivity. On the other hand, by combining with other frontier technologies, such as quantum science and gene biology, AI spawns a series of strategic emerging and future-oriented industries. This accelerates the construction of a more intelligent, open and collaborative industrial ecosystem.

China has abundant data resources, a well-developed industrial system and a huge market, which all offer great potential for the development of AI. In terms of industry, China has essentially established a full-stack AI industrial system covering infrastructure, frameworks, models and applications. The domestic AI market is projected to exceed RMB 190 billion by 2026, representing a compound annual growth rate of roughly 19.6%.. In terms of enterprises, China has cultivated over 400 specialized, refined, distinctive and innovative "little giant" enterprises in AI at a national level, accounting for around one-tenth of the global AI industry. In terms of application scenarios, data indicates that China's current generative AI adoption rate stands at 83%, ranking it first globally.

 

Reshaping New Paradigms for AI Development

Leveraging China's advantages of a vast market and a wide range of application scenarios, efforts must be integrated across three dimensions: strengthening industrial foundations, optimizing enterprise organization and deepening scenario development. This will systematically shape new paradigms for high-quality AI development.

Strengthening Industrial Foundations: Building an AI Development System. AI industrial development should advance synergistically across three dimensions: industrial parks, industrial chains and industrial clusters, to establish a multi-tiered development system. Industrial parks: National-level industrial parks, such as National High-Tech Zones and National Economic and Technological Development Zones, should focus on strategic deployment in key sectors and drive breakthroughs based on comparative advantages. Industrial Chains: In the upstream sector, strengthen chip R&D and manufacturing through national laboratories and leading technology enterprises. In the midstream sector, develop core technologies via industry–university–research collaboration. In the downstream sector, create benchmark application scenarios. Industrial clusters: Use regional platforms, such as the National New Generation AI Innovation Development Pilot Zones and the National AI Innovation Application Pioneer Zones, to create cross-regional collaborative networks similar to the Yangtze River Delta G60 Science and Technology Innovation Corridor. This will drive the advancement of AI industries.

Optimize corporate organization to cultivate a tiered AI ecosystem. A dual-drive system for AI enterprises should be established, combining "inbound attraction" with "local cultivation" to form an industrial ecosystem in which large, medium, and small enterprises collaborate through tiered attraction and nurturing. A global resource matching platform will be built to further aggregate corporate headquarters and new R&D institutions, refining the "localization-globalization" synergy system. The leading enterprise-driven system should be strengthened by opening large-model technology platforms and capabilities to SMEs via a "large-to-small" mechanism. This will create a new advantage of "cluster-based" open-source operations for China's AI enterprises. Cultivate a startup incubation ecosystem by leveraging the guiding role of government investment funds to promote the hybrid incubation model of "government innovation + private sector acceleration + talent support + capital acceleration".

Deepening scenario development activates the AI application engine. AI scenario construction is pivotal for driving technological implementation and industrial upgrading. This requires the establishment of a virtuous cycle system encompassing "data openness - scenario empowerment - ecosystem synergy". The intelligent utilization of government data requires thorough implementation of the "Data Element×" initiative, encouraging governments at all levels to authorize public data operations. A "government oversight + market-driven operation" model should be explored to clarify ownership and revenue rules while advancing standardized, regulated data provision. State-owned enterprise scenario sharing: Encourage state-owned enterprises at all levels to collaborate more closely with AI enterprises by setting up cooperative platforms and increasing procurement. Industry agent application deployment: Promote scenario-based agent applications via industry associations and research institutions to support enterprises in deploying agents within key scenarios.

 

 

Comprehensive Advancement of the Development & Empowerment of AI Applications

Nov 01-2025   



*This article is based on an article from Huang Zhuo, Deputy Dean and Professor at PKU NSD, Dean of BiMBA Business School, and Zhou Ding, Assistant Director of the Think Tank Centre at PKU Changsha Institute of Computing and Digital Economy.

 

Seizing Major Strategic Opportunities

Comprehensively advancing AI development and application is crucial for reshaping industrial ecosystems and driving high-quality socio-economic growth. On the one hand, AI technology is deeply integrated into industrial innovation and development through the "AI Plus" initiative, accelerating the digital and intelligent transformation of traditional industries and achieving a structural leap in total factor productivity. On the other hand, by combining with other frontier technologies, such as quantum science and gene biology, AI spawns a series of strategic emerging and future-oriented industries. This accelerates the construction of a more intelligent, open and collaborative industrial ecosystem.

China has abundant data resources, a well-developed industrial system and a huge market, which all offer great potential for the development of AI. In terms of industry, China has essentially established a full-stack AI industrial system covering infrastructure, frameworks, models and applications. The domestic AI market is projected to exceed RMB 190 billion by 2026, representing a compound annual growth rate of roughly 19.6%.. In terms of enterprises, China has cultivated over 400 specialized, refined, distinctive and innovative "little giant" enterprises in AI at a national level, accounting for around one-tenth of the global AI industry. In terms of application scenarios, data indicates that China's current generative AI adoption rate stands at 83%, ranking it first globally.

 

Reshaping New Paradigms for AI Development

Leveraging China's advantages of a vast market and a wide range of application scenarios, efforts must be integrated across three dimensions: strengthening industrial foundations, optimizing enterprise organization and deepening scenario development. This will systematically shape new paradigms for high-quality AI development.

Strengthening Industrial Foundations: Building an AI Development System. AI industrial development should advance synergistically across three dimensions: industrial parks, industrial chains and industrial clusters, to establish a multi-tiered development system. Industrial parks: National-level industrial parks, such as National High-Tech Zones and National Economic and Technological Development Zones, should focus on strategic deployment in key sectors and drive breakthroughs based on comparative advantages. Industrial Chains: In the upstream sector, strengthen chip R&D and manufacturing through national laboratories and leading technology enterprises. In the midstream sector, develop core technologies via industry–university–research collaboration. In the downstream sector, create benchmark application scenarios. Industrial clusters: Use regional platforms, such as the National New Generation AI Innovation Development Pilot Zones and the National AI Innovation Application Pioneer Zones, to create cross-regional collaborative networks similar to the Yangtze River Delta G60 Science and Technology Innovation Corridor. This will drive the advancement of AI industries.

Optimize corporate organization to cultivate a tiered AI ecosystem. A dual-drive system for AI enterprises should be established, combining "inbound attraction" with "local cultivation" to form an industrial ecosystem in which large, medium, and small enterprises collaborate through tiered attraction and nurturing. A global resource matching platform will be built to further aggregate corporate headquarters and new R&D institutions, refining the "localization-globalization" synergy system. The leading enterprise-driven system should be strengthened by opening large-model technology platforms and capabilities to SMEs via a "large-to-small" mechanism. This will create a new advantage of "cluster-based" open-source operations for China's AI enterprises. Cultivate a startup incubation ecosystem by leveraging the guiding role of government investment funds to promote the hybrid incubation model of "government innovation + private sector acceleration + talent support + capital acceleration".

Deepening scenario development activates the AI application engine. AI scenario construction is pivotal for driving technological implementation and industrial upgrading. This requires the establishment of a virtuous cycle system encompassing "data openness - scenario empowerment - ecosystem synergy". The intelligent utilization of government data requires thorough implementation of the "Data Element×" initiative, encouraging governments at all levels to authorize public data operations. A "government oversight + market-driven operation" model should be explored to clarify ownership and revenue rules while advancing standardized, regulated data provision. State-owned enterprise scenario sharing: Encourage state-owned enterprises at all levels to collaborate more closely with AI enterprises by setting up cooperative platforms and increasing procurement. Industry agent application deployment: Promote scenario-based agent applications via industry associations and research institutions to support enterprises in deploying agents within key scenarios.