China’s artificial intelligence sector is experiencing fast growth, supported by a distinctive governance model that combines strict oversight with large-scale innovation. A central feature of this model is the country’s mandatory algorithm registry, which requires companies to register AI systems that may influence public opinion or behavior before deployment. This framework gives regulators visibility into how AI is being used while allowing developers to continue experimenting and scaling new technologies across industries.
The registry covers a wide range of AI applications, including generative models, recommendation systems, and deep synthesis tools. These systems are being adopted in fields such as healthcare, logistics, energy management, finance, education, and customer service. By enforcing registration, authorities aim to reduce risks like misinformation, bias, and social harm, while still encouraging companies to bring AI-driven products to market at speed.
China’s AI development is concentrated in major technology hubs such as Beijing, Shanghai, Shenzhen, and Hangzhou, where strong research ecosystems, venture funding, and manufacturing capabilities intersect. At the same time, innovation is spreading beyond these cities, with regional firms building AI solutions tailored to local industries, including manufacturing optimization, agriculture, and public services. Collaboration between state-backed enterprises and private tech companies further accelerates adoption.
Beyond domestic growth, many Chinese AI firms are increasingly focused on international markets. Some establish overseas operations to expand their customer base or adapt to global regulatory and trade environments. This outward push highlights China’s ambition to shape the global AI landscape, showing how a tightly regulated system can still produce a fast-moving and competitive artificial intelligence industry.
