China's AI industry: China's AI revolution is not making progress

August 31, 2025, 1:00 PM |

Reading time: 3 min.

A remote-controlled robot from Unitree Robotics during the World Artificial Intelligence Conference (WAIC) in Shanghai at the end of July. Robotics benefits from AI, both of which are heavily promoted by the government in China. (Photo: HECTOR RETAMAL/AFP)

China's tech giants Alibaba, Tencent, and Baidu have invested billions in AI, but their quarterly figures remain weak and the hoped-for profits have not materialized.
Chinese customers are refusing to accept payment models for AI services, while price wars among corporate customers are eroding margins.
The corporations cannot withdraw from the AI offensive because artificial intelligence is considered a key state-supported technology in Beijing.

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Billions in investments, big promises: Alibaba, Tencent, and Baidu have built their futures on artificial intelligence. But the numbers remain weak, and consumers are resisting.

By Gregor Scheu , Beijing

Fear was immense when Deep Seek suddenly appeared on the scene. Within hours, the unexpected emergence of the Chinese AI model wiped billions in stock market value in the West. Fears of a technological turning point were palpable: China would become an AI superpower and would soon be unstoppable, and the rise of major Chinese tech companies like Tencent, Alibaba, and Baidu was only a matter of time.