China's Generative AI Users to Hit 602 Million by 2025

China's generative artificial intelligence (AI) users are projected to reach 602 million by December 2025, reflecting a remarkable year-on-year growth of 141.7 percent. This increase signifies the significant integration of generative AI into everyday life and industrial processes, establishing it as a critical driver of China's digital transformation.

The data, derived from the 57th Statistical Report on China's Internet Development published by the China Internet Network Information Center (CNNIC), underscores the rapid advancements in the country's internet landscape. The report reveals that the penetration rate of generative AI in China has surged to 42.8 percent, an impressive rise of 25.2 percentage points from the previous year.

By the close of December 2025, the total population of internet users in China hit 1.125 billion, elevating the internet penetration rate to over 80 percent. The establishment of 4.838 million 5G base stations showcases the country's commitment to expanding high-speed mobile networks, with widespread 5G access now available in all townships and in 95 percent of administrative villages.

China's digital infrastructure is now recognized as world-leading, featuring comprehensive 5G coverage and intelligent computing capabilities that rank among the globe's top tier. According to Wang Changqing, a research fellow from CNNIC, these advancements create a robust foundation for emerging sectors, notably artificial intelligence and the broader digital economy.

The report further highlights the escalating role of small and medium-sized enterprises (SMEs) in strengthening industrial and supply chains. With over 60 million SMEs operating in China—accounting for 99.9 percent of all enterprises and contributing to 84.3 percent of employment—the significance of these businesses cannot be overstated. Additionally, nearly 6,000 specialized "little giant" firms have emerged in forward-looking sectors such as quantum technology and low-altitude economies.

Wang emphasized that through the "AI Plus" initiative, SMEs are not merely passive beneficiaries of AI technology; rather, they are pivotal forces in advancing AI applications. As these enterprises continue to evolve, they are expected to benefit from enhanced policy support aimed at providing fiscal incentives and improving access to data resources.

This policy backing is projected to further fuel innovation within SMEs, accelerating the commercialization of artificial intelligence technologies across various sectors. The government’s commitment to empowering these businesses highlights an important strategy to maintain a competitive edge in the global digital landscape.