China's AI industry tops 1.2 trillion yuan, up 40%

China's AI industry surpassed 1.2 trillion yuan in 2025, up 40% year-on-year, according to the China Academy of Information and Communications Technology. By June 2026, over 6,600 AI companies were operating in China, accounting for 15% of the global total, forming a complete industry chain from infrastructure to applications.

The infrastructure layer grew 59% year-on-year, making up 38% of the industry. The model and framework layer surged 189%, accounting for 7%. The application layer grew 22%, representing 55%. The industry is heavily concentrated in Beijing, Guangdong, Shanghai, Zhejiang, and Shandong, which together account for over 80% of the total.