AI: The Latest Phase in the Digital Transformation

Rise of China as an Artificial Intelligence Power: Evolution, Explanation and Implications

Xinyi Zhang
Jun Sun
Kai Jia
2026

China’s position as an artificial intelligence (AI) leader is remarkable as it has nurtured a globally competitive ecosystem. Moreover, open-source programs developed in China are being adopted globally. This success is surprising when considered against the background of China’s previous relatively weak position in software and other advanced technologies. The chapter examines the process by which China became a global AI leader. We trace the development and governance strategies the Chinese government and firms adopted to become globally competitive. We assess China’s position in a world...