"China's AI Industry to Grow to 77 Trillion Won by 2025... We Must Also Promote Development"

Korea International Trade Association's Institute for International Trade and Commerce Claims in Report on 'Trends and Implications of China's AI Industry'

Provided by Korea International Trade Association

[Asia Economy Reporter Kim Heung-soon] It is forecasted that the scale of China’s AI industry, which is accelerating its "AI rise," will grow to 77 trillion won by 2025. South Korea is facing a widening technological gap with advanced AI countries, prompting calls to revise related regulations and focus on nurturing talent.

On the 8th, the Korea International Trade Association’s International Trade and Commerce Research Institute stated in its report titled "Trends and Implications of China’s AI Industry" that "South Korea must unite the public and private sectors to prepare for China’s AI rise era."

According to the report, China’s AI industry size is expected to expand from 150 billion yuan (approximately 25.789 trillion won) last year to 450 billion yuan (approximately 77.364 trillion won) by 2025, growing at an average annual rate of 26.8%. Additionally, 20.7% of the world’s AI-related papers cited last year were published in China, with China surpassing the United States for the first time in the number of citations, ranking first.

The Chinese government presented AI as the first of seven advanced scientific technologies to be completed by 2035 through the "14th Five-Year Plan (2021?2025) and Long-Term Goals for 2035," passed at the National People’s Congress in March. AI is also being utilized across various sectors such as urban infrastructure, healthcare, manufacturing, and transportation.

By integrating AI, China is leading the development and commercialization of facial recognition security technology and rapidly expanding the autonomous vehicle market, while also addressing social issues such as healthcare disparities between urban and rural areas.

The report assessed, "China has emerged as the world’s second AI powerhouse after the United States, supported by its big data competitiveness, a massive domestic market of 1.4 billion people, and a policy environment backed by strong government will and mid- to long-term strategies." It added, "Under government approval, access to personal data is relatively easy, and the vast domestic market can be leveraged as a base for AI technology development, attracting large-scale capital and talent."

As of last year, China’s AI technology level stood at 85.8% of the United States (100), ranking third after Europe (89.5%). South Korea’s level is 80.9% compared to the United States. Bo-hee Jeon, a senior researcher at the Korea International Trade Association, said, "Despite being a latecomer, China’s growth strategy in advanced industries warrants close attention." She added, "South Korea should also reform regulations to foster the AI industry, shift policy directions toward openness and sharing paradigms, and focus on nurturing high-level talent and attracting overseas experts."

This content was produced with the assistance of AI translation services.