China is aiming to achieve a 70% penetration rate of AI technologies within the next couple of years, enabling its population to utilize "next-generation smart terminals, intelligent agents, and other applications" by 2027, according to a State Council directive that sets the country's most ambitious artificial intelligence targets to date.
The policy aims to "reshape modes of production and everyday life" and "enable a revolutionary leap in productive forces," mandating the integration of AI across technology, industry, consumption, governance, welfare, and international cooperation.
By 2030, penetration rates are expected to reach 90%, with a complete transition to an "intelligent economy and intelligent society" by 2035, according to the council.
Meeting the 2027 target means that 980 million Chinese citizens will regularly use AI-powered devices or services. For context, China's smartphone penetration hit 70% in 2018, eight years after the iPhone's local launch. Beijing expects similar AI adoption within the next three years.
These targets far exceed Western timelines. The U.S. National AI Initiative Act contains no concrete adoption mandates. The EU's AI Act focuses on risk management rather than deployment.
Meanwhile, other nations are scrambling to keep pace.
Canada boosted its AI strategy this year. Taiwan has also published a plan to generate over $510 billion in AI technology by 2040. Egypt's Digital Builders program, backed by Microsoft and Amazon, aims to train 100,000 AI specialists by 2030.
The aggressive timeline builds on existing momentum from Chinese AI companies like DeepSeek, whose models already power various applications, including Shenzhen's surveillance systems, voice controls in Geely vehicles, and diagnostic tools in nearly 100 hospitals.
Longgang County, one of nine districts in Shenzen, cut administrative approval times by 90% after adopting Deepseek’s AI. The startup has been successful despite U.S. export restrictions, which are specifically designed to prevent China from winning the AI war with American hardware.
The State Council’s directive calls for "AI-native enterprises whose underlying architectures and operating logic are based on AI" and encourages enterprises to incorporate artificial intelligence into strategic planning.
It also calls for promoting “intelligent interconnection of everything” across smart terminals and product ecosystems.
The Chinese policy promises to "help Global South countries build AI capabilities" through open-source technology and computing resources, positioning Beijing as an alternative to models presented by the West. It specifically mentions "treat[ing] AI as an international public good for the benefit of humankind."
Industrial applications include "intelligent agricultural equipment such as smart farm machinery, agricultural drones, and agricultural robots" in farming, while the service sector must adopt "unmanned services" alongside human workers.
But the financial services, logistics, and legal sectors would need to undergo significant transformation to achieve such goals, not to mention the growing pains that will accompany the continued evolution of the tech.
The policy acknowledges risks including "model opacity (black-box), hallucinations, and algorithmic discrimination," establishing governance frameworks for "natural persons, digital persons, and intelligent robots," suggesting preparation for AI agents requiring legal status.
The State Council's language leaves little room for interpretation: regions and departments "shall closely integrate these opinions with actual conditions" and "ensure tangible results," it said.
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