CHINA Trends and Developments Contributed by: Gil Zhang, Diana Li, Muran Sun and Huihui Li, Fangda Partners
AI-driven service provisions. Prior to joining the firm, he practiced antitrust and competition law in a leading PRC law firm, and advised on cybersecurity and data protection.
Fangda Partners 24/F, HKRI Centre Two HKRI Taikoo Hui 288 Shi Men Yi Road Shanghai 200041 China Tel: +86 21 2208 1166 Fax: +86 21 5298 5599 Email: email@fangdalaw.com Web: www.fangdalaw.com
Overall Industry and Market Trends National policies to help develop the Chinese AI sector China aims to become the world’s major AI innova - tion centre by 2030. A development plan issued by the State Council outlines the goal of realising an AI core industry exceeding CNY1 trillion (~USD 140.9 billion) in value, with related industries surpassing CNY10 trillion (~USD 1.4 trillion). Since 2016, China has achieved remarkable progress in the field of AI through strategic planning and initiatives. The gov - ernment has introduced a series of comprehensive blueprints and public policies designed to support AI companies across multiple dimensions, including tal - ent cultivation, start-up incubation, computing power and infrastructure procurement, investment schemes and incentives, taxation, product marketisation and other related aspects. Key policies include the “Inter - net+ AI” Three-Year Implementation Plan (2016), the New Generation Artificial Intelligence Development Plan (2017), National AI Open Innovation Platforms (2019), the AI Standardization Strategy (2020), AI Pilot Zones (2022) and the “AI+” Initiative (2024). China’s adoption of AI across sectors is also growing rapidly, with the country’s AI ecosystem thriving under a wave of supportive policies. For instance, major shopping platforms, e-commerce sites and short-
video apps are all deploying AI algorithms for content feeds, payments, and user services. The government has also been pushing for “smart retail” upgrades, with retailers adopting AI for inventory management, cashier-free shopping and even the generative design of products. In addition, major Chinese tech compa - nies have launched numerous large language models (LLMs). As of March 2025, approximately 350 LLMs have been filed with the Cyberspace Administration of China (CAC). These models cover a wide range of applications, including fintech, medical and health - care, education, intelligent manufacturing, content creation and enterprise services. The medical sector: from departmental tools to institutional AI integration AI technology is deconstructing traditional health - care systems, enabling a transition from department- specific empowerment to hospital-wide intelligent ecosystems. AI in hospitals is evolving from isolated applications into a catalyst for systemic digital trans - formation. The emergence of “agent hospital” models – AI-driven systems capable of managing end-to-end clinical workflows – marks a strategic departure from department-level tools to full institutional integration. These AI agents are now capable of supporting diag - nosis, clinical documentation, education and scientific research.
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