12 June 2022

The next frontier for AI in China could add $600 billion to its economy

Kai Shen, Xiaoxiao Tong, Ting Wu, and Fangning Zhang

By 2030, AI could disrupt transportation and other key sectors in China, adding significant economic value—but only if strategic cooperation and capability building occur across multiple dimensions.

In the past decade, China has built a solid foundation to support its AI economy and made significant contributions to AI globally. Stanford University’s AI Index, which assesses AI advancements worldwide across various metrics in research, development, and economy, ranks China among the top three countries for global AI vibrancy.1 On research, for example, China produced about one-third of both AI journal papers and AI citations worldwide in 2021. In economic investment, China accounted for nearly one-fifth of global private investment funding in 2021, attracting $17 billion for AI start-ups.2

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