Chinese Premier Li Qiang has underscored the importance of accelerating the integration of artificial intelligence with advanced manufacturing to create new economic growth drivers amid slowing domestic demand and mounting external pressures.
- Premier Li calls for faster AI adoption in manufacturing sectors.
- China’s AI industry valued at $174 billion in 2025.
- Policy aligns with China's 15th five-year plan priorities.
What happened
Chinese Premier Li Qiang visited key innovation hubs including Xiaomi’s electric vehicle factory and the Humanoid Robot Innovation Centre in Beijing, home to multiple AI startups focused on embodied robotics. During the visit, he urged strengthened collaboration between AI companies and advanced manufacturing to accelerate intelligent robotics and AI applications across the industrial sector.
Li specifically advocated for expanding AI integration throughout manufacturing processes such as research and development, production, quality control, and after-sales service. He also emphasized the importance of industry-specific AI models and agents to boost productivity and innovation nationwide.
Why it matters
China is facing significant economic pressures, including sluggish domestic consumption, a prolonged property market downturn, and escalating trade tensions with the US and Europe. Against this backdrop, Beijing views AI and advanced manufacturing as pivotal to driving new economic momentum and maintaining competitive advantages in global markets.
The core AI industry in China reached a valuation exceeding 1.2 trillion yuan (approximately $174 billion) last year, with over 30% of large manufacturers adopting AI technologies. This underscores the increasing significance of intelligent automation in enhancing industrial efficiency and resilience amid economic uncertainties.
What to watch next
China is expected to continue investing heavily in fundamental AI research, key technology development, and innovation platforms to support its AI-plus advanced manufacturing strategy. Observers should monitor governmental policy updates and funding allocations targeting AI integration to assess the pace of this transformation.
Economic analysts will also watch how effectively AI-driven productivity gains contribute to China’s GDP growth, with forecasts suggesting generative AI alone could boost growth by 0.2 to 0.3 percentage points by 2030. The successful deployment of AI in manufacturing will be a key indicator of China’s ability to offset ongoing economic headwinds.