In parallel, China's government is working closely with established digital companies such as Baidu, Alibaba and Tencent. Young companies also receive tax breaks, government contracts and offices in AI clusters if they wish. There is sufficient capital from both the state and private sector for the establishment, scaling and growth of AI start-ups in China. Hundreds of new AI professorships have been established, and hundreds of thousands of study places have been created.Ĭhina now has a mature and efficient start-up ecosystem on which younger AI companies are building. To achieve this, the government takes an analytical approach and is aware of its own weaknesses and strengths. At the same time, the state provides incentives for the administration and politicians to assert themselves in the AI industry and to recommend themselves for higher tasks. The provision of legal frameworks, resources and goals, coupled with local freedom to adapt, is creating a rapidly growing AI industry. Overall, China is doing many things right. While cities such as Tianjin and Shanghai have already launched multi-billion-dollar AI city Venture Capital funds and had entire districts and islands built for new AI companies, other provinces are still in the process of learning and development. The implementation of the national strategy varies greatly from region to region. The result is a national and regional administrative state that works closely with research, investors and industry to build a successful AI ecosystem. Values and goals are set from above, and resources are made available.Īt the local level of municipalities, cities and provinces, regional administrations compete for the new AI clusters. Central strategy - local implementationĬhina is pursuing a centrally controlled strategy with hyperlocal implementation. Artificial Intelligence will be used to protect military and digital interests, but it will also enable the population to live a good life in safety. Additionally, AI will help the central government monitor and control its own population.

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