The AI boom is giving China’s economy a powerful new boost
Hundreds of billions of dollars invested in US data centers are creating demand for Chinese hardware makers, suppliers and AI companies.
Global investment in AI infrastructure has emerged as one of the most significant growth engines for China’s economy this year. According to research firm Capital Economics, the information technology sector accounted for more than half of China’s economic growth in the second quarter of 2026. During the first four months of the year, AI-related exports contributed 1.1% to nominal GDP growth, compared with 0.4% for the entirety of 2025.
China’s AI-driven growth is, at least partly, a byproduct of the hundreds of billions of dollars being invested in AI infrastructure in the United States. That spending is creating enormous demand for the hardware, components and equipment required to build data centers. As a result, roughly a quarter of US AI investment flows to foreign companies, primarily across Asia.
Chinese economists estimate that the AI sector now accounts for approximately 17% of the country’s GDP. Goldman Sachs has identified more than 3,000 Chinese companies participating in the AI value chain, including energy providers, semiconductor and data center equipment manufacturers, AI developers and companies building AI-powered applications such as autonomous vehicles.
According to Goldman Sachs, Chinese companies now generate 16% of global AI-related revenue. However, the AI boom is unlikely to fully offset China’s deeper structural challenges.
