AI — China's New Driving Force

28 Jun 2023Venturous Group



China is emerging as a driving force in the field of artificial intelligence (AI). With significant investments and advancements in AI technology, China is positioning itself as a global leader in this transformative industry. The country's government has made AI a national priority, fostering innovation and creating a favourable environment for AI development. Chinese tech giants such as Baidu, Alibaba and Tencent are at the forefront of AI research and application, making significant contributions to areas like computer vision, natural language processing and robotics. Additionally, China's vast population and massive data resources provide a unique advantage for AI research and development. With its commitment to AI, China aims to harness the power of this technology to drive economic growth, enhance various sectors including healthcare and transportation and shape the future of industries and society as a whole.

The "Secret Weapon" of Alibaba

The new CEO of Alibaba, Eddie Wu, joined in 1999 as its first programmer. He has held roles such as CTO of Alipay. He is now leading Alibaba's efforts to boost market competitiveness by refocusing on the Taobao platform, prioritising customer needs and driving digitalisation initiatives.

China-US AI Battle Wages On

China and the US are in fierce AI competition, but determining a long-term winner is challenging. China once had an advantage but is now weakened by the emergence of generative AI. AI development has two directions: control and liberation. China is focusing on reconciling these functions.

Bright Spots

China's manufacturing of electric vehicles and renewable energy sources, such as solar and wind, experienced substantial growth, with EV production rising by over 42% since the first half of 2023. World Bank and IMF indicate China will contribute at least 30% of the global economic growth this year.



New energy vehicles (NEVs) purchased in 2024 and 2025 will be exempted from purchase tax amounting to as much as 30,000 yuan (US$4,170) per vehicle. The exemption will be halved and capped at 15,000 yuan for purchases made in 2026 and 2027.


CNY declines against the USD, hitting a 6-month low. Onshore and offshore yuan dropped below key levels, with a 4.6% depreciation this year. Depreciation theoretically benefits exports, but companies face pressure as overseas orders fall short.


China leads globally, making 6GHz spectrum available for 5G and 6G systems. This high-quality resource offers wide bandwidth, superior coverage, and capacity, fostering innovation in mobile communication technology.


China's 2022 marriage registrations hit a record low of 6.83 million couples, coinciding with the country's first population decline in six decades. This downward trend in citizen numbers has far-reaching consequences for the economy and the global landscape.