China had 602 million users of generative artificial intelligence (AI) by December 2025, a 141.7 percent increase from the previous year, according to the 57th Statistical Report on China’s Internet Development released on Thursday by the China Internet Network Information Center (CNNIC). The report highlights how generative AI is increasingly integrated into daily life and production, positioning it as a key engine of China’s digital and intelligent transformation.
The report also revealed that the penetration rate of generative AI climbed to 42.8 percent, up 25.2 percentage points year-on-year. China’s total internet user base reached 1.125 billion by the end of December 2025, pushing national internet penetration beyond 80 percent. The country has built 4.838 million 5G base stations, with coverage extending to all townships and 95 percent of administrative villages, while evolved 5G networks now serve over 330 cities nationwide. Wang Changqing, a research fellow at CNNIC, told the Global Times that these developments provide a globally leading digital infrastructure, laying a strong foundation for AI, the digital economy, and other emerging sectors.
Small and medium-sized enterprises (SMEs) are emerging as a major force in China’s industrial and technological landscape. The report notes that the country has over 60 million SMEs, representing 99.9 percent of all enterprises, 84.3 percent of employment, and 78 percent of corporate assets. Nearly 6,000 highly specialized, innovation-driven “little giant” enterprises have emerged in sectors such as AI, quantum technology, and low-altitude economy applications.
Under the government’s “AI Plus” initiative, SMEs are both beneficiaries and frontline drivers of AI adoption. Wang said that policymakers plan to provide greater support for SMEs through fiscal incentives and enhanced access to data resources, further accelerating the commercialization and practical application of AI technologies across industries.
The CNNIC report underscores how China is combining advanced digital infrastructure, widespread internet access, and policy support to position generative AI and other emerging technologies as central pillars of its continued economic and industrial transformation.
