The Chinese economy is trying to combine elements of market and planned, therefore, as the authorities announce new plans for the development of specific sectors, the latter begin to actively absorb investments. Since 2016, $ 30 billion has been invested in Chinese companies developing artificial intelligence systems.
It was in 2016 that the PRC authorities announced the inclusion of artificial intelligence systems in the priority development plan, since then young companies with such specialization have managed to attract about $ 30 billion in investments. For comparison, for the entire period from 1998 to 2020, this direction of development in China attracted $ 35 billion. It turns out that 86% of the funds received by Chinese startups in the field of AI have been attracted precisely in the last four years.
More than a third of these funds went to companies based in Beijing. It is home to the country’s leading academic institutions, which often give life to young companies. Shenzhen is in second place, behind Beijing in terms of investments by almost two and a half times. Shanghai closes the top three in attracting investor funds in the field of artificial intelligence. In China, there are now about 100 unicorn companies: this is the name for private companies with a potential capitalization of more than $ 1 billion. The bulk of such companies in China is precisely associated with developments in the field of artificial intelligence.
In the plan for the next five-year period, the PRC authorities intend to include serious financial support for the semiconductor sector. By the middle of the next decade, China expects to master the production of semiconductor components on its territory using 7-nm technology. Alas, this field of activity implies the investment of huge sums in fixed assets, and therefore cannot attract the same number of young players as the development of artificial intelligence systems.