China Leverages AI to Drive Productivity, Sustainability, and Global Leadership
Artificial intelligence (AI) is taking center stage at the 2026 World Economic Forum (WEF) in Davos, running from January 19 to 23, as it continues to reshape the global landscape.
China is positioning itself at the forefront of this AI revolution, using the technology to drive economic growth, foster industrial innovation, and play an active role in shaping global AI governance.
Accelerating Industrial Transformation
AI‘s role in China’s industrial upgrade is evident in both traditional and emerging sectors, where AI applications are enhancing productivity, improving quality control, and driving upgrades.
In Jintan, east China’s Jiangsu Province, China’s first salt cavern-type underground gas storage facility is harnessing an AI-powered system to optimize gas injection and extraction. Based on large-scale AI models, the facility selects around 300 key processes from over 3,800 core operations, creating a closed loop of intelligent perception, precise decision-making, efficient scheduling, and autonomous execution. This results in significantly improved operational efficiency and stability in gas supply management.
In south China’s Guangdong Province, AI-driven forecasting and control systems have helped wind farms withstand extreme weather. During Typhoon Matmo in 2025, a large model-based early warning and dispatch system enabled engineers to remotely control thousands of coastal wind turbines, adjusting them to typhoon-resistant positions to minimize disruption and enhance safety.
AI in Green, Efficient Energy Development
China has also developed its first integrated underground-surface dynamic simulation system. Using digital twin technology, it creates a full-scenario model of underground oil and gas reservoirs, wellbores, and surface pipeline networks.
The system can accurately predict reservoir distribution, monitor in real time the mixed flow of oil, gas, and water in wellbores, and provide early warnings of risks such as water or gas breakthroughs.
AI has also become a key tool for the petrochemical industry in achieving green and low-carbon transformation. At Sinopec’s Shengli Oilfield, an intelligent system integrates carbon capture, utilization, and storage technology with digital twin models. Via AI optimization of temperature and pressure parameters, the system enhances carbon capture efficiency. The system also uses digital twin models to simulate the diffusion path of CO2 injection into oil reservoirs, achieving simultaneous oil recovery and carbon sequestration and aligning economic production with environmental sustainability.
In manufacturing, AI is driving sustainable practices. In east China’s Shandong Province, a tire factory has adopted AI-driven systems that monitor production in real time—from raw material input to finished product delivery. This technology has led to a 30-percent increase in efficiency and a 50-percent reduction in product defects. Additionally, AI-powered automation systems have replaced manual labor, making the entire production process safer, faster, and more environmentally friendly.
More recently, the country released a work plan to deepen the integration of the industrial internet and AI, as part of a broader effort to strengthen its manufacturing sector.
China’s Global AI Governance
As AI transforms China’s domestic industries, the country is also taking an active role in shaping global AI governance.
In 2023, China introduced the Global AI Governance Initiative, aiming to foster international collaboration on AI development, safety, and regulation. The initiative emphasizes the importance of ethical, inclusive, and transparent AI practices, encouraging global stakeholders to work together for the common good.
In July 2025, China hosted the World Artificial Intelligence Conference in Shanghai, where the Global AI Governance Action Plan was published, calling on all parties to fully unleash the potential of AI while ensuring its safety, reliability, controllability, and fairness. In September, the country proposed the AI+ International Cooperation Initiative at a high-level meeting on the Global Development Initiative, expressing its willingness to work with all parties to leverage AI to empower various industries.
Moreover, through programs like the AI Capacity-Building Action Plan for Good and for All, which includes training workshops and dialogues in cities like Beijing and Shanghai, China is helping build AI knowledge and skills in the developing world. These efforts contribute to global AI development and ensure that the benefits of AI are shared across nations.
