China builds diversified AI landscape by leveraging regional strengths

China is drawing on its nationwide capabilities to develop a locally tailored yet nationally coordinated artificial intelligence industry, aiming to accelerate the commercial application of AI and create new economic momentum.

The latest economic data from 31 provincial-level regions shows rapidly growing demand for AI terminal applications, alongside a tiered development pattern based on the strengths and resources of individual regions.

"The driving role of the AI wave is becoming increasingly pronounced in emerging industries such as integrated circuits and industrial robots across regions," said Xiao Hongwei, a researcher at the State Information Center under the National Development and Reform Commission, China's top economic planning agency.

"AI is accelerating its transformation from a technical concept into tangible productivity gains in China," Xiao said.

First-tier ai hubs
China's intelligent computing capacity reached 2,185 EFLOPS by the end of June, up 177 percent year on year, reflecting the rapid expansion of the country's AI infrastructure. The nationwide utilization rate of computing facilities stood at 71.4 percent, according to the Ministry of Industry and Information Technology.

EFLOPS, or exaFLOPS, is a measure of computing performance, with one unit representing 1 quintillion floating-point operations per second.

Xiao said regions across China are developing their AI sectors according to local conditions and leveraging their respective strengths, resulting in a pattern of complementary advantages and coordinated development.

"Benefiting from their strengths in technology, talent and industrial chains, Beijing, Shanghai and Guangdong Province are taking the lead in developing indigenous AI industrial ecosystems while continuing to advance the full industrial chain in areas such as integrated circuit manufacturing and industrial robots," he said.

All three regions have identified "global AI competitiveness" as a goal in their five-year plans for 2026-2030, seeking leadership in AI technology, industrial ecosystems and application scenarios.

Beijing is working to establish itself as a global AI innovation hub. As of July 23, the capital had completed filings for 259 large models and registrations for 195 AI products, including general-purpose large models, industry-specific models and on-device mobile models, according to the municipal cyberspace administration.

By the end of June, 169 large AI models in Shanghai had received filing approval. The city's 394 above-scale AI enterprises generated more than 637 billion yuan ($93.85 billion) in industrial output in 2025. In Guangdong, the core AI industry exceeded 300 billion yuan in scale last year.

Diversified tracks with unique advantages
Other regions are also using their distinctive resources to develop specialized AI sectors and pursue differentiated growth paths.

East China's Anhui Province is stepping up efforts in the AI chip industry and has achieved a series of breakthroughs. Nexchip, the province's first 12-inch wafer foundry, debuted on the Hong Kong Stock Exchange in July, giving it dual listings in Hong Kong and on the A-share market. Its fourth-phase project, involving an investment of 35.5 billion yuan, is scheduled to begin production in the fourth quarter of this year.

ChangXin Memory Technologies, a memory chipmaker based in Hefei, the capital of Anhui, also went public in late July and became the most valuable company on China's A-share market.

Central China's Hubei Province is leveraging its strong optoelectronics sector. Its capital, Wuhan, is home to the Optics Valley of China, and the province has built a globally competitive full industrial chain covering optical communications, chips, displays, terminals and networks to meet growing demand for AI computing power.

Henan Province, traditionally a major transportation hub, is using AI to transform itself from a "railway heart" into a "computing power hub."

In April, the country's largest scientific intelligent computing cluster began operations at the national supercomputing network's core node in Zhengzhou, the capital of Henan. The project marked a major advance in China's computing infrastructure for AI-driven scientific research and industrial applications.

Meanwhile, regions including Xinjiang, Inner Mongolia and Guizhou are leveraging their abundant clean energy resources to develop intelligent computing centers.

Computing center in the mountains
Located in the Wuling Mountains in Lichuan City, Hubei Province, the Lichuan AI Computing Center demonstrates how geographical and natural advantages, including a cool climate and clean air, can support AI development.

Although Lichuan lacks abundant scientific and educational resources, its relatively cool weather and rich hydropower resources make it a suitable location for a computing center with comparatively low electricity costs.

The facility houses rows of black server cabinets, each about two meters high, with rapidly flashing indicator lights. It provides around 150 PFLOPS of computing power, with utilization exceeding 80 percent.

PFLOPS, or petaflops, measures computing speed for AI and data-intensive applications, with one PFLOP equivalent to 1 quadrillion calculations per second.

The center's services now support sectors including culture and tourism, government affairs and aerospace information.

In Liangwu Township of Lichuan, GEOVIS Raywin Technology Co. Ltd. has established a satellite ground receiving station that can directly access computing resources from the nearby AI center to process satellite data in real time.

"The site is surrounded by mountains yet offers expansive views, with a pristine electromagnetic environment and a mild, stable climate. These natural endowments make it an ideal location," said Gao Kui, the company's general manager of operations.

He said the station's proximity to the computing center also improves operational efficiency and convenience while reducing costs.

Beyond meeting external demand for computing power, the center's surplus capacity is supporting local industries. More than 20 million tourists visit Lichuan each year for summer retreats and wellness, generating huge amounts of data related to accommodation, food, transportation, sightseeing, shopping and entertainment.

These data have supported the development of a domestic large language model for culture and tourism services, improving visitors' experiences through AI-powered smart guides and other services.

The Ministry of Industry and Information Technology, working with other government departments, has been promoting the development of high-quality computing infrastructure. It is accelerating the coordinated deployment of hub, regional and edge computing facilities while building a national integrated automated monitoring system to track computing power and its use.