China's State Council, the cabinet, on August 26, 2025 released a guideline on deepening the implementation of the Artificial Intelligence (AI) Plus Initiative to promote the in-depth integration of AI and various industries, vowing to achieve extensive and deep integration of AI with six key areas including sci-tech and consumption by 2027.

The guideline stipulated that by 2027, the popularization rate of applications such as next-generation intelligent terminals should exceed 70 percent while the scale of core industries of the intelligent economy should achieve a high growth rate. The role of AI in public governance should be significantly enhanced, while the open and cooperative system of AI would be continuously improved.

By 2030, the document called for AI to become a full enabler of China's high-quality development, with the penetration rate of next-generation smart terminals, smart bodies and other applications exceeding 90 percent. The smart economy would by then become an important growth driver for China's economic development, promoting technology accessibility and sharing of benefits.

Eventually, by 2035, AI will provide strong support for the basic realization of socialist modernization as China has comprehensively entered a new stage of development of the smart economy and smart society, according to the document posted on the government's website on Tuesday.

The six areas are sci-tech, industry, consumption upgrading, people's wellbeing, governance and global cooperation, in which the policy emphasized efforts in promoting AI as an international public good that benefits humanity, fostering an open ecosystem for AI capacity building based on equality, mutual trust, diversity, and win-win outcomes.

After initial market testing, AI has demonstrated its ability to solve complex problems in some real-world scenarios. Its role in reducing costs, increasing efficiency, and boosting total factor productivity is becoming increasingly prominent, the National Development and Reform Commission (NDRC) said in a statement issued on Tuesday, expounding the significance of the guideline.

Demand for AI applications is unprecedentedly strong across all sectors of society, and the country is entering a critical window for AI's implementation, the top economic planner said.

However, the NDRC noted that there are problems such as inconsistent understanding of the role of AI, inadequate supply and demand matching, and "last mile" obstacles in application implementation, and "it is urgent to strengthen strategic guidance and overall guidance."

Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Tuesday that new intelligent products and scenarios are emerging one after another, and various intelligent entities are already playing a vital role in production and daily life, with intelligent devices, such as connected cars, smart wearables, smart homes and intelligent robots increasingly introduced into factories and homes.

"The guideline takes a holistic view of the development of AI to tap its potential and the ultimate aim is to enhance efficiency, reduce costs, and boost capability," Xiang said.

China's AI sector has seen comprehensive advancement, with China accounting for 60 percent of global AI patents and achieving breakthroughs in humanoid robots and intelligent hardware, said Liu Liehong, head of the National Data Administration, at a press conference on August 14, highlighting China's notable strides in digital technologies during the 14th Five-Year Plan period (2021-25).

China's computational power now ranks second in the world, providing robust support for economic and social development, Liu said.

The guideline was approved at a State Council Executive Meeting on July 31, according to Xinhua.