AI applications expand, fueling China's economic growth

BEIJING, Oct. 20, 2026 /PRNewswire/ -- This is a report from China SCIO

Artificial intelligence (AI) is becoming a new driver of China's economic growth, transforming manufacturing and supporting modern services while boosting consumption, investment and exports, officials said at a press conference Monday.

Wang Guanhua, spokesperson of the National Bureau of Statistics (NBS), said China has stepped up its "AI Plus" initiative, accelerating the application of AI in industry.

AI is driving the shift toward smarter manufacturing. Its rapidly expanding applications are generating demand for chips, servers and smart devices, in turn boosting growth in digital product manufacturing, Wang said.

In the first three quarters, digital product manufacturing contributed to more than one-third of the growth in value-added output of industrial enterprises above designated size. Integrated circuit output rose 23.3% year on year during the same period.

With digital workshops and smart production lines coming into operation, AI is rapidly shifting "from an optional technology to a standard part of production," she said.

At the same briefing, Mao Shengyong, deputy commissioner of the NBS, said the AI adoption rate in key application scenarios among large manufacturing enterprises had exceeded one-third.

Modern services are also benefiting from demand for AI model training, software development, computing power and algorithms. Value-added output in information transmission, software and information technology services rose 10.4% year on year in the first three quarters, with AI providing an important boost, Wang said.

In the first eight months, revenue at enterprises above designated size in the digital technology application sector grew 7.5% year on year, including a 12.8% increase for information technology service providers.

AI is moving out of the lab and into everyday life, turning cutting-edge technology into accessible consumer experiences, Wang said. AI glasses, smartwatches and fitness bands are becoming increasingly popular. In the first three quarters, retail sales of smart wearable devices rose more than 70% year on year.

AI is also reshaping brick-and-mortar retail and spurring the growth of smart retail formats. In the first three quarters, sales at unmanned stores grew more than 25% year on year.

Meanwhile, investment and exports in emerging sectors are expanding due to AI. In the first three quarters, investment in electronic circuit manufacturing, integrated circuit manufacturing and information services rose 58.7%, 14.2% and 20.2% year on year, respectively.

Supported by China's equipment upgrade and consumer goods trade-in policies, companies are accelerating their adoption of smart technologies, helping drive a 9.7% increase in investment in equipment and tools during the period.

China's comprehensive industrial supply chains also enable companies to quickly roll out AI hardware and software tailored to different applications and better meet overseas demand, Wang said.

In the first three quarters, exports of electronic components rose 70% year on year, while those of electrical wires and cables increased 25.3%. Products such as AI glasses and smart bionic robots are continuing to expand the range of AI applications worldwide.

Wang said China's comprehensive industrial system, rapid response capabilities, abundant data resources, vast domestic market, and diverse application scenarios would continue to support the development of AI.

AI applications expand, fueling China's economic growth
http://www.china.org.cn/2026-10/20/content_118740921.shtml

SOURCE China SCIO