China’s AI application, economic transformation attracting attention from the world

Applications of AI


Foreign experts say China is focusing on applying artificial intelligence across industries, and its broader economic transition to high-tech sectors has attracted global attention.

Eurasia Group’s head of practice for China, David Mehl, said on the sidelines of the China Development Forum 2026 on Sunday that China’s approach to artificial intelligence stands out for its focus on real-world industrial applications, rather than just frontier technology models.

“What strikes me is that China is different from the U.S. in that they are really focused on integrating AI applications into almost every part of their production processes and business operations, compared to what you see in other countries that are more focused on frontier models and their capabilities,” he said.

Mir said China’s transition to a more technology-driven economy will be watched globally, especially as AI reshapes industries and employment structures around the world.

“Currently, it’s very difficult for any country to adapt to a world where AI is displacing workers in some sectors, while new sectors are not creating many new jobs at the same time. China is also thinking about how to navigate that transition,” he said.

Looking ahead, he said the international community will pay close attention to how China balances technological innovation, consumption growth and economic restructuring in the coming years.

“Over the next five years, the world will be watching to see whether consumption grows relative to investment and exports, and how China navigates that transition,” he said.

Mir also said that China is preparing for a more turbulent global environment and positioning itself as a stabilizing force in the global economy.

“China is planning for a world of turmoil. With its vast market, its plans, and its position in the world, China wants to send a message that it will push world events toward more stability,” he said.

He added that stable Sino-US relations are important for the stability of global supply chains.

“Both countries understand that we cannot survive in a world where each country’s role in the supply chain is unpredictable,” he said.



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