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          Nation's efforts in AI seen bearing fruit

          BCG: China to sustain innovation in breakthrough fields, promote adoption

          By FAN FEIFEI | China Daily | Updated: 2025-04-09 09:33
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          Wu Chun [Photo provided to China Daily]

          Chinese enterprises have demonstrated unique competitiveness in the use of artificial intelligence, while the open-source ecosystem and exploration of AI application scenarios are reconstructing the path of tech evolution, said Wu Chun, managing partner of Boston Consulting Group Greater China.

          China is one of the front-runners in generative AI development in the Asia-Pacific region, and is actively utilizing such cutting-edge technology to modernize various sectors and cultivate talent, Wu told China Daily during the recently concluded China Development Forum 2025.

          "By leveraging its diverse and complete industrial system, world-leading infrastructure, large-scale reserve of scientific and technological talent, and cluster-based innovation ecosystem, China will definitely sustain innovation in breakthrough technologies and continue to promote achievements in fields such as AI adoption," Wu said.

          According to BCG research, the global AI adoption landscape presents a significant imbalance. Notably, only five economies are categorized as AI pioneers, and the Chinese mainland is among them. As an AI pioneer, the Chinese mainland has gained a competitive advantage in skills, research and development, ecosystems, and investment, and is taking the lead in patents and AI academic papers.

          Wu added that industrial transformation and upgrading, coupled with continuous breakthroughs in innovative technologies, have created more development space and cooperation opportunities for foreign enterprises, allowing them to share long-term results and benefits through collaborative innovation.

          "We have seen China's technological innovation rise rapidly over the past few decades, bringing breakthrough innovations in multiple fields," she said.

          Market potential and innovation vitality will be stimulated in areas like AI Plus and inclusive innovation, she added.

          As for accelerated efforts to expand their presence in overseas markets amid increasing uncertainties and an evolving international landscape, Wu said Chinese enterprises have gradually shifted their strategic focus in their globalization processes.

          "They are not only expanding their presence abroad but also integrating into local economies, establishing refined local operational capabilities and building sustainable businesses that align well with the dynamics of local markets," she noted.

          It is estimated that Chinese enterprises will participate in the global value chain at a higher level in the future, and there definitely will be both opportunities and challenges ahead.

          According to BCG's research results, one-third of Chinese enterprises regard the challenges of the evolving international landscape as the primary obstacle to their overseas strategies. They are confronted with multiple challenges due to uncertainties arising from geopolitical tensions and rising trade protectionism.

          "With the rapid development of emerging technologies such as AI, technology companies may encounter technical and innovation barriers as well as regulatory and compliance challenges in the process of overseas expansion," Wu said.

          "Despite these uncertainties and challenges, the dynamic market environment and consumer demand have also created new development opportunities."

          The rapid growth of emerging markets, such as the Association of Southeast Asian Nations, India and Africa, brings new opportunities for Chinese enterprises in overseas expansion, she added.

          Chinese enterprises have accumulated years of advantages in production and supply chains, education and innovation capabilities, as well as world-leading expertise in digital technology and its applications. "These core advantages can enable Chinese enterprises to seize emerging opportunities under the new development landscape."

          Moreover, Wu said they should establish a risk assessment mechanism and enhance their resilience through diversification strategies, localized operations and flexible adjustments of business models, while stressing the need to construct production bases and supply chain networks across multiple regions, build local teams and cooperate with local enterprises.

          He Zhiyi, chief expert from the Institute for Global Industry at Tsinghua University, said, against the backdrop of a restructuring of global supply chains, it is essential to "build world-class enterprises "through self-reliant innovation and optimize the layout in industrial chains globally to "form a more balanced and stable development pattern in both developed and developing countries".

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