Xi Targets AI Leadership as China Makes Progress in Digital Industry

Chinese President Xi Jinping expects Shanghai to lead the nation’s development of AI. Various government departments separately highlighted progress in the digital industry over the past 15 months.

The Chinese premier tasked Shanghai with heading its AI strategy and governance during a visit to a dedicated incubator, the State Council Information Office revealed. News agency Xinhua expanded, reporting President Xi said AI was moving into a phase of explosive growth during the visit to the incubator which houses more than 100 enterprises.

Details of President Xi’s AI incubator visit came on the same day the State Council Information Office revealed digitalization drove gains for major enterprises in China’s cultural sector and related industries during Q1, and the head of the National Data Administration detailed a surge in the amount of data generated by the country in 2024. China’s figures show the combined revenue among 80,000 cultural and related enterprises grew 6.2% YoY to almost CNY3.4 trillion ($467.5 billion) in Q1. Quoting National Bureau of Statistics figures, the government reported that the companies generated a combined CNY274.4 billion in profit, due to an expansion in digital content and internet information services, online culture and entertainment platforms, and the production and sales of information service terminals.

Industries spanning the manufacture of intelligent unmanned aerial vehicles for entertainment, digital publishing, and internet advertising services contributed 83.5% of the total revenue, the state body wrote. The digital push is perhaps reflected in a surge in the amount of data China produced in 2024. Xinhua reported National Data Administration head Liu Liehong put the figure at 41.06 zettabytes, up 25%, during a speech at the opening of the Eighth Digital China Summit in Fuzhou. The official also said central digital industries accounted for around 10% of China’s GDP in 2024.