China says ready to build AI application cooperation hub
ByAinvest
Monday, Sep 1, 2025 4:28 am ET1min read
China says ready to build AI application cooperation hub
The National Development and Reform Commission (NDRC) of China has announced plans to build an AI application cooperation hub, signaling a strategic shift to promote the adoption of smart devices and foster innovation in AI terminal consumption. This initiative aims to stimulate market demand, encourage cutting-edge technology development, and create a sustainable AI ecosystem.The NDRC's new subsidy methods for AI terminal consumption are designed to incentivize both public and private investment in the sector. By providing financial support for innovative AI products, the commission aims to promote the growth of the AI sector while ensuring sustainable development and resource optimization [1]. This approach aligns with China's broader strategy to compete with the United States in the global AI landscape.
The AI market in 2025 has shown a sharp contrast between execution leaders and laggards. Companies like Nvidia, which have demonstrated strong execution in AI strategies, have seen significant gains, while those struggling with execution, like Marvell, have faced investor skepticism despite revenue growth [2]. This market differentiation highlights the importance of strategic execution over mere investment in AI technologies.
In addition to promoting AI innovation, the NDRC has also announced plans to set minimum private shareholding requirements for major national infrastructure projects, including railways, nuclear power, and oil pipelines. This move aims to broaden private investor access to major national ventures and bolster overall economic growth.
China Telecom (00728.HK) and BABA-W (09988.HK) recently held a strategic cooperation signing ceremony, further underscoring the country's commitment to AI and digital transformation. The two companies will engage in deep cooperation in cloud and AI infrastructure, new service industry e-commerce, and social value innovation [3].
As China continues to push AI as a critical growth driver, the NDRC's new subsidy methods for AI terminal consumption and the AI application cooperation hub are set to play pivotal roles in shaping the future of the sector. By promoting innovation and strategic execution, these policies aim to create a more sustainable and competitive AI ecosystem in China.
References:
[1] https://www.ainvest.com/news/china-ndrc-promote-smart-device-adoption-innovate-ai-terminal-consumption-subsidy-methods-2509/
[2] https://www.ainvest.com/news/ai-premium-market-rewards-strategic-ai-adoption-penalizes-laggards-2508-38/
[3] http://www.aastocks.com/en/stocks/news/aafn-news/NOW.1466699/3
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