In the 21st century, AI has emerged to significantly enhance the new quality productive forces — a new development philosophy in China that emphasizes quality innovation, high efficiency, high-tech, high productivity and sustainability free from traditional development paths.

　　With this focus, China's AI development has driven transformative advancements across multiple sectors, achieving unprecedented levels of production efficiency while catalyzing a new era of qualitative transformation.

　　Core of innovation and productivity

　　Unlike traditional productive forces, which rely on capital, labor and land, AI serves as a driver and key enabler of science and technology innovation. It enables enterprises to analyze real-time data, optimize production processes, and predict market trends, driving the enterprises to meet the market demand and increase total factor productivity by 10-15 percent.

　　Optimizing its AI policy and roadmap (i.e., New Generation Artificial Intelligence Development Plan 2017, focusing on goals to establish AI as a key driver of economic transformation by 2025 and position China as the global hub for AI innovation by 2030), China's strengths in digital technology, manufacturing ecosystem, and market scale, have made remarkable progress in AI-driven technological innovation, particularly in the development of large AI models and robotics.

　　For example, DeepSeek, a leading Chinese AI company, has developed a 671B parameter AI model that is affordable to all. Besides China's DeepSeek, DouBao, Ernie Bot, and Kimi AI tools, are LLM-based robust generative AI tools for both personal and professional usages. In addition, Unitree Robotics' humanoid robots demonstrated outstanding performance when dancing with professional dancers at the 2025 Spring Festival Gala, presenting the deeper integration of technological innovation across industries.

　　Transforming traditional sectors

　　AI is reshaping traditional industries, driving digital transformation, promoting innovation, and upgrading across sectors such as manufacturing, agriculture, and healthcare. AI is at the core of China's smart manufacturing initiative. Factories are adopting AI-driven systems for predictive maintenance, quality control, and supply chain optimization, improving operation and product quality and reducing waste.

　　For example, Haier's COSMOPlat connects 150,000 upstream and downstream enterprises, reducing order response time from 21 days to just three days. Foxconn has introduced an AI visual inspection system that has significantly increased product yield rates to 99.9 percent. According to the China Iron and Steel Association, 80 percent of steel enterprises have established intelligent control centers, enhancing production efficiency by over 30 percent.

　　In addition, AI is being used to generate high-quality content, personalize user experiences, and enhance user engagement. Online shopping platforms like JD and Taobao are leveraging AI for intelligent customer service and precision marketing, resulting in improved operational efficiency and increased sales.

　　Reshaping the economy and society

　　AI is not only reshaping industries but also having a profound impact on the socioeconomic landscape. It is creating new job opportunities, driving economic growth, and making humans more productive, innovative, and smart. While AI may reduce certain repetitive jobs, it is also creating many new professions, including AI expert, data science, model trainer, algorithm developer, prompt engineering, and user experience design, and demand for high-skilled workers is on the rise.

　　Moreover, AI is improving people's livelihoods and promoting sustainable development. For example, in agriculture, AI-powered drones and monitoring systems are helping farmers increase crop yields and reduce pesticide use. In healthcare, AI is assisting in early disease detection and improving diagnostic accuracy. Meanwhile, in the energy sector, AI optimizes clean energy systems, enhancing efficiency and grid reliability, while accelerating green innovation to expand access and reduce carbon footprints, crucial for achieving UN's SDG 7.

　　Bottom line

　　AI is not only driving sci-tech innovation and industrial upgrading but also reshaping its socioeconomic fabric, emerging as a core engine for the cultivation of new quality productive forces. China is actively contributing to the world by unlocking the full potential of AI, fostering an AI-driven economy, creating potential opportunities for inclusive and sustainable growth, enhancing productivity, improving the quality of life, and democratizing AI access. As AI continues to evolve, China's proactive approach to responsible innovation and the development of AI governance frameworks is beneficial in navigating the opportunities and challenges ahead, ensuring that AI serves as a powerful engine for progress and prosperity.

　　Dr. Md Altab Hossin is a Bangladeshi expert at the School of Innovation and Entrepreneurship, Chengdu University.