China Deploys Coordinated National AI Industry Strategy

The Ministry of Industry and Information Technology is coordinating a nationally integrated AI industry strategy that leverages the specific resource endowments of 31 provincial-level regions to accelerate commercial deployment. By June 2026, national intelligent computing capacity rose 177% year-on-year to 2,185 EFLOPS, maintaining a facility utilization rate of 71.4%.

Beijing, Shanghai, and Guangdong Province serve as first-tier hubs focusing on indigenous AI ecosystems and global competitiveness in industrial robots and integrated circuits. Other provinces are pursuing specialized tracks: Anhui Province is expanding AI chip production through Nexchip and ChangXin Memory Technologies, while Hubei Province utilizes its optoelectronics industry in Wuhan. Henan Province has transitioned into a computing power hub, recently launching a major scientific intelligent computing cluster in Zhengzhou.

To optimize infrastructure, China is deploying hub, regional, and edge computing facilities, including a national automated monitoring system. Regions such as Xinjiang, Inner Mongolia, and Guizhou are utilizing clean energy to host computing centers, while the Lichuan AI Computing Center in Hubei leverages hydropower and cool climates to reduce electricity costs. Xiao Hongwei of the State Information Center noted that AI is transforming from a technical concept into tangible productivity gains, particularly within emerging industries.