China's AI surge marks global tech transformation

The Rise of AI in China

In recent months, a growing number of people in Hong Kong have been seen gathering outside the headquarters of a Chinese mobile internet company, eager to get assistance with installing an artificial intelligence assistant. This scene has become common not only in Beijing but also in Shenzhen, where engineers have been helping crowds set up the popular AI "agent" OpenClaw on their laptops.

Sun Lei, a 41-year-old human resources manager, expressed her concern about falling behind in technological developments. She hopes that this tool might help her source and screen resumes across various recruitment platforms.

More than a year after DeepSeek, a Chinese rival of OpenAI, stunned the world with its advanced AI model, China has become a testing ground for mass use of AI tools. While AI models from the United States still lead in raw computing power, Chinese individuals and businesses have quickly embraced the technology, facilitating its rapid and widespread adoption in almost every possible field.

As global AI adoption increases at workplaces and in daily lives, ordinary Chinese people are using AI for a variety of tasks, from booking and planning travel, ordering food, and hailing rides. According to a report by the government-controlled China Internet Network Information Center, more than 600 million people in China were using generative AI as of December, marking a 142% increase from the previous year.

With the recent surge in the use of "agentic" AI like OpenClaw, the consumption of data by AI models has also risen. Measured in what computer scientists call tokens, or units of data such as parts of a word, the weekly share used by Chinese AI models has recently surpassed U.S. models, according to OpenRouter, an AI "gateway platform" that tracks data and enforces security across different AI models.

Jason Tong, a 64-year-old retiree in Shanghai who worked as an IT engineer, has been using AI chatbots such as Doubao and Kimi for everyday queries since they were introduced a few years ago. He began paying closer attention to his health and joined a blood glucose monitoring service run by a Shanghai-based company that uses an AI model to generate tailored health advice. He found its personalized, rapid responses helpful.

Widespread adoption of AI applications in everyday life is inevitable, Tong believes, “Just as carriages were eventually replaced by trains, this is bound to happen.”

AI Integration in Daily Life

Chinese products incorporating AI, such as cars and robots, are making significant advancements, from humanoid robots with advanced cognitive capabilities to AI systems that drivers can use for more complicated tasks like making a restaurant reservation.

Lizzi Lee, a fellow at the Asia Society Policy Institute’s Center for China Analysis focused on economics and technology, said, “The (AI) competition is clearly shifting from models to ecosystems.” Chinese users are acting as real-time testers at scale.

Chinese technology companies like Tencent, Alibaba, and Baidu are racing to commercialize AI. Tencent integrated OpenClaw into WeChat, China's own "super-app" which is primarily a messaging tool but can also be used to do things like ordering food and making payments. Alibaba is embedding "agentic" AI into its workflows.

OpenClaw, originally created by Austrian software developer Peter Steinberger last year, gained quick and enthusiastic use thanks to its ability to use various tools to complete complicated tasks.

Zhao Yikang, a Chinese college student in Macao, uses OpenClaw in both his studies and daily life. He was struck by how low-cost and efficient it is, using it to automatically generate promotional videos and manage social media accounts during his internship at a real estate agency in the southern Chinese city of Zhuhai.

“AI can understand things in a second,” Zhao said. “You just need to act as a commander and tell it what to do.”

Preparing to start a photo services business after graduation, Zhao asked AI to build a company website. Within 10 minutes, it had generated a fully functional site for less than 5 yuan (70 cents).

Despite several warnings from Chinese authorities about potential security risks over OpenClaw AI "agents" like data leaks as installations spiked, the broad interest had not faded.

AI Adoption and Challenges

Chinese companies are increasingly setting internal targets for boosting use of AI to improve efficiency, said Janet Tang, a partner & managing director focused on technology at consultancy AlixPartners. There are “a lot of application scenarios,” said Wang Xiaogang, co-founder of the Chinese AI software company SenseTime and chairman of ACE Robotics. “The industry is developing very fast and the people, they are very open and they’re eager to try the AI in a lot of scenarios.”

China has sought to stack the deck in its favor, investing heavily in nurturing talent and ensuring access to abundant, affordable electricity for power-hungry AI developments and breakthroughs. To achieve technology breakthroughs including in AI, Chinese leaders have pledged an annual average growth of at least 7% in nationwide spending on research and development in the country’s five-year plan until 2030. An “AI plus” national blueprint outlines steps to integrate AI into many areas of life, from healthcare to education. Judges in Shenzhen processed 50% more cases last year, a court said, partly with the help of an AI tool assisting judicial processes.

However, limited access to some of the world’s most advanced computer chips due to U.S. restrictions remains a bottleneck for China’s AI advancement.

“Export controls on tools have slowed China’s chipmaking capabilities, and are the Achilles' heel of many AI labs that need advanced AI chips,” said Samm Sacks, a senior fellow at New America focused on Chinese technology policies.

But the controls also have led to improved coordination of design, manufacturing, and adoption across China’s tech supply chain. “Over time this dynamic could fuel, not foil, China’s ambitions,” Sacks said.

When China's DeepSeek released its long-anticipated V4 AI model preview last month, one major change was that it’s supported in part by computer chips made by Chinese tech giant Huawei. That means less dependence on top U.S. chipmakers such as Nvidia.

A recent report by Stanford University’s Institute for Human-Centered AI says the U.S.-China gap in top AI models’ performance has “effectively closed.”

U.S. policymakers and top AI firms including Anthropic and OpenAI have accused Chinese AI startups of stealing U.S. AI technologies. China says such allegations are groundless.

Lian Jye Su, a chief analyst at the research and advisory group Omdia, believes any AI gap between the U.S. and China will continue to narrow, despite U.S. export controls and China’s Great Firewall, the ruling Communist Party's massive internet filter and censorship system.

Analysts including Su believe that hurdles such as the Great Firewall are likely to impact China's AI use in limited ways, given that the technology already is being tested, integrated, and scaled up under China's controlled internet environment.

“It won’t be long before China moves from fast follower to parallel innovator,” he said.