China is experiencing a remarkable economic revival, driven largely by the increasing pervasiveness of artificial intelligence (AI). The country’s largest smartphone company, Honor, has just announced its newest foldable phone will be the thinnest on the market, thanks to its AI manufacturing tools. This achievement underscores the significant impact of AI in industries such as electronics.
However, China’s economic growth is not limited to urban areas; signs suggest that rapid urbanization has spread to smaller cities and even rural areas. The county of Malipo in Yunnan province has seen a surge in durian trade since revamping its “Tianbao” land trading port with investments from Hong Kong’s Sunwah Group.
AI is also transforming industries such as energy, transportation, and manufacturing. German industrial giant Siemens launched 16 AI-integration related products in just nine months, all developed in China. Companies are reaping the rewards of years or months of development after significant integration of AI with business operations began roughly a year ago.
Despite mixed signals on growth, China’s economic situation remains resilient. The official purchasing managers’ index showed a third-straight month of contraction in manufacturing, while one from Caixin and S&P Global unexpectedly rebounded into expansionary territory. The US and China are inching closer to a trade truce, with the two sides signaling progress on conditional agreements to resume exchanges of rare earths and advanced technology.
In conclusion, AI is playing a pivotal role in China’s economic revival, transforming various industries and driving growth in both urban and rural areas. As the country continues to navigate challenges, its resilience and determination remain promising indicators for its future prospects.
Source: https://www.cnbc.com/2025/07/02/cnbc-china-connection-newsletter-a-slowing-economy-meets-a-fast-future-ai.html