White Paper | In-Depth Analysis of China’s AI Rise and Challenges on the Global Stage

Introduction

This chapter explores the current development status, international standing, core competitiveness, and regional differences of China in the field of Artificial Intelligence (AI). In terms of development status, although AI financing data in China has reached an eight-year low and the number of patent applications has decreased, the scale of core industries is steadily growing, and the entrepreneurial environment is showing signs of recovery after a period of stagnation. Regarding international standing, China’s AI position continues to improve globally, but there remains a significant gap compared to the United States. In terms of core competitiveness, China’s rich data resources, expanded education system, and strong research capabilities lay a solid foundation for the continued development of AI in the future. Finally, from the perspective of regional differences, the collaborative development of the Yangtze River Delta, the leadership of the Beijing-Tianjin-Hebei region, and the complementary advantages of the Guangdong-Hong Kong-Macao region together outline a diverse development blueprint.

1. The Number of AI-Related Companies Ranks Second in the World

As of the end of 2023, the number of AI-related companies in China reached 9,183, which, while significantly less than the 14,922 in the United States, is far ahead of other countries such as India (3,281), the UK (3,136), and Canada (1,835). The concentration of AI-related companies indicates China’s competitiveness and influence in the global AI sector. This outstanding performance is the result of multiple factors working together. First is the support of national policies; the Chinese government’s emphasis on and support for AI has facilitated rapid industrial growth. Secondly, China’s vast market demand provides extensive application scenarios and business opportunities for AI companies. Additionally, China’s substantial investments in AI education and research have provided a rich talent pool and technological accumulation for AI enterprises.

White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global Stage

Chart 1: Number of AI-Related Companies in Major Countries as of End of 2023 (Unit: Companies)

2. The Number of Top AI Researchers is Relatively Low

As of the end of 2023, China has 1,014 top AI researchers, accounting for 11.1%, ranking second in the world. The number of top AI researchers in the United States is more than three times that of China, and its research environment attracts top talents from around the globe, including researchers from China. This is related to the historical accumulation and education system in the United States in the field of AI. The U.S. started AI research earlier and has world-class institutions such as MIT and Stanford University, as well as globally renowned innovation centers like San Francisco and New York, which have cultivated and attracted a large number of AI talents. In contrast, although China has invested heavily in AI education and research, it still has gaps compared to the U.S. due to its later start. China needs to continue investing in education and research to cultivate more AI talents while also improving the quality of education, creating more high-level job opportunities, and enhancing research conditions to retain and attract talent; additionally, adopting open immigration policies and international cooperation is also very important.

White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global Stage

Chart 2: Proportion of Top AI Researchers in Major Countries as of End of 2023 (Unit: %)

3. AI Financing Amounts Fall Far Behind the U.S.

As of the end of 2023, the risk financing amount for AI startups in China reached $233.35 billion, ranking second in the world, indicating that China’s investment in the AI industry has reached an internationally leading level, which is conducive to accelerating the R&D and application processes of domestic companies in this field. However, compared to the United States, there is still a significant gap in the total financing amount for AI startups in China. This is primarily because the U.S., as one of the world’s largest economies, has a mature capital market and venture capital system; secondly, the U.S. is in a leading position in the global AI technology competition, making it easier for its AI companies to capture the global market and attract capital worldwide. Besides the U.S. and China, other countries have relatively low financing amounts for AI startups, indicating that the funding concentration in the AI field globally is relatively high. Furthermore, the distribution of financing amounts also shows certain regional characteristics, with developed countries and some countries with active technological innovation making more significant investments in the AI sector.

White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global Stage

Chart 3: Financing Situation of AI Startups in Major Countries as of End of 2023 (Unit: $100 million)

4. AI Software Development Contributions Second Only to the U.S.

As of the end of 2023, China ranks second in the world for contributions to high-impact (with more than 100 forks on GitHub) open AI projects, only behind the U.S. This is thanks to Chinese tech companies such as Tencent, Huawei, and Baidu, as well as higher education institutions like Peking University and Tsinghua University, which have made significant investments in AI and developed a series of influential AI projects, actively sharing them on platforms like GitHub. Although the contributions of open AI projects from China have been increasing in recent years, there is still a gap compared to the U.S., and the open-source culture has not yet deeply rooted. The U.S. occupies a pivotal position in open-source contributions to AI, being a global center for technological innovation with many world-class tech companies and universities, as well as top AI talents, which has fostered a large number of open AI projects and propelled global AI development; moreover, the open innovation and collaboration culture advocated by the U.S. has facilitated knowledge sharing, creating favorable conditions for contributions to open AI projects.

White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global Stage

Chart 4: Contributions to High-Impact Open AI Projects by Major Countries as of End of 2023

Despite the significant progress China has made in the field of AI, there are still some gaps compared to the U.S. China needs to further strengthen its fundamental research and talent cultivation in the field of AI to narrow the gap with the U.S. At the same time, it should continue to promote the innovative application of AI technologies and strengthen cooperation with the international community to jointly advance the development and application of AI technologies. In the future, with China’s continued investment and policy support in the field of AI, it is believed that China will achieve greater accomplishments in AI, making a more significant contribution to the global development of AI.

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White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global Stage

Join the Shenzhen AI Industry Association

The Shenzhen AI Industry Association is a non-profit social organization officially approved by the Shenzhen Civil Affairs Bureau. As the first AI industry association in the country, it has been rated as a 5A social organization by the Shenzhen Civil Affairs Bureau and recognized as a high-skilled talent training base (“Digital Economy Special Base”) by the Shenzhen Human Resources and Social Security Bureau, and has established an intellectual property protection workstation. The association has always been committed to enhancing mutual trust and cooperation among government, enterprises, academia, and funding, successfully hosting four Shenzhen International AI Expos, eight China AI Leaders Summits, six Global AI Entrepreneurs Conferences, over 60 series of activities visiting benchmark enterprises, conducting over 60 AI industry research projects, compiling annual AI white papers, publishing multiple professional industry reports, and producing several issues of the industry journal “AI Times.”White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global StageWhite Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global StageWhite Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global StageAssistant WeChat ID: saiia2020White Paper | In-Depth Analysis of China's AI Rise and Challenges on the Global StageMembership and Cooperation Inquiries:Ms. Pi 18138278934Ms. Yang 19129313525Mr. Zeng 19129313529Ms. Jian 19075361117Mr. Guo 18138280145Mr. Wu 18124191807Ms. Chen 0755-88917464Ms. Ou 18124191872

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