According to a report by China Daily on January 25, 2026
Application-driven approach positions China as a major AI deployment hub
China’s AI momentum continues to accelerate, with 87% of domestic companies increasing AI investment in 2025 and many reporting faster-than-expected adoption, according to Deloitte China and McKinsey Greater China executives at the World Economic Forum in Davos.
Unlike a focus on frontier models alone, China is following an application-first pathway, emphasizing industrial integration, practical deployment, and cost-effective solutions across manufacturing, logistics, healthcare, finance, and retail.
Key Context
Retail platforms, led by JD.com, saw AI product sales double year-on-year, while smart devices such as robots and AI-enhanced glasses grew 3x to 10x, with consumer interest skyrocketing, according to JD’s CEO Xu Ran.
Enterprise adoption spans every business function, from generative design in marketing to automation across supply chains, as highlighted by Tencent Cloud CEO Dowson Tong.
Startups like Moonshot AI benefit from China’s industrial breadth and openness to new technology, leveraging real-world data to scale AI beyond lab environments.
Investor Takeaways
Short-term: China’s AI adoption across manufacturing, logistics, and retail offers immediate opportunities for tech partners, system integrators, and industrial IoT suppliers.
Medium-term: The application-driven model positions China to generate measurable productivity gains, providing a fertile landscape for enterprise AI investments.
Strategic insight: Consumer acceptance and market scale create long-term growth potential in AI-driven products and services, signaling opportunities in smart devices, automation tools, and cross-industry AI solutions.