BRICS+ Series: China’s Expanding Digital & E-commerce Economy

Artificial intelligence (AI) has become a key area of focus for China as it seeks to advance its economy and strengthen its influence in high-tech industries. The country is leveraging AI to make transformative changes across multiple sectors, including healthcare, finance, and public security. With government support, significant investments, and a robust talent pool, China aims to position itself as a global leader in AI innovation by 2030. 

Healthcare

AI is revolutionising China’s healthcare sector, from diagnostics and medical imaging to drug discovery. Leveraging AI-powered tools, healthcare providers can improve early detection, personalise treatments, and enhance efficiency. Chronic and autoimmune disease management is anticipated to experience rapid growth, given the country’s ageing population and increasing prevalence of these conditions. AI applications such as predictive analytics for patient outcomes and advanced diagnostic tools are also expanding. Notably, China has seen an increase in the use of AI for medical imaging analysis, allowing for quicker and more accurate diagnoses, especially in rural areas where healthcare resources may be limited.

Autonomous Vehicles

China is at the forefront of autonomous vehicle technology, with plans to achieve a 56% market penetration for Level 3 and above autonomous driving systems by 2030. AI-driven advancements in this sector have accelerated research and development for autonomous electric vehicles (EVs), reshaping China’s transportation landscape. In cities like Beijing and Shanghai, pilot programs are already underway, showcasing fully autonomous taxis and public transport solutions. The country’s commitment to smart cities has created a favourable environment for autonomous vehicle testing and deployment, reinforcing China’s leadership in this transformative technology.

AI Industrial Parks and Innovation Zones

To facilitate AI growth, Beijing has developed several dedicated innovation zones, notably the Zhongguancun Science Park, often referred to as China’s Silicon Valley. These areas host a concentration of AI companies, startups, and research institutions. The Haidian District, in particular, has become a centre for machine learning, natural language processing, and computer vision research. These zones not only provide resources for AI enterprises but also create a collaborative environment that attracts investors interested in tapping into China’s rapidly growing AI market.

Shanghai has positioned itself as China’s first “All-Optical Network Smart City,” integrating AI technologies across sectors like the digital economy, industrial internet, and remote work. By the end of the 14th Five-Year Plan in 2025, Shanghai’s AI industry is expected to reach a core industry value of over $350 billion, with a projected total industry scale surpassing $560 billion. Government incentives, including subsidies for AI research and a $13.8 billion parent fund, underline the city’s commitment to supporting AI-driven innovation.

China’s AI E-commerce growth

Over the first two months of 2025, China's e-commerce sector maintained its upward trajectory, driven by the country's emphasis on digital economic development and consumer engagement. Official data indicates that online retail sales of physical goods increased by 5% year-on-year during the same period in 2024, while total retail sales of consumer products and services grew by 4%. This momentum is largely fueled by China’s heavy investment in artificial intelligence (AI), particularly by major technology firms. Companies like Meituan have invested billions into AI-driven chip development, following Alibaba’s lead in AI innovation. These efforts have resulted in the creation of advanced language models such as Qwen and strengthened partnerships with global tech companies. Consequently, AI integration has improved supply chain management and enhanced customer experiences through personalised recommendations and superior customer support. Additionally, the government’s consumer goods trade-in initiative has played a crucial role in boosting e-commerce by encouraging product upgrades and increasing demand across multiple categories. The rise of humanoid robots and other smart devices highlights a growing consumer interest in cutting-edge digital products.

China’s visa-free policies have also contributed significantly to e-commerce expansion by revitalising the tourism industry, leading to a 35.9% surge in online tourist service sales compared to the previous year. This underscores the connection between e-commerce and tourism, where increased travel drives higher demand for online bookings, accommodations, and related services. Furthermore, China's commitment to international e-commerce cooperation through the Silk Road e-commerce framework has expanded the availability of foreign products on its platforms. Sales of Colombian passion fruit and Serbian wine surged by 355.5% and 215.8%, respectively, showcasing China's role as a global trade powerhouse. Investment trends further highlight the sector's dynamism, with information services investment growing by 66.4% and e-commerce services investment rising by 31.9% in early 2025. Mobile commerce remains a critical driver of this growth, with over 60% of Chinese online shoppers using smartphones for purchases, prompting platforms to optimise user interfaces for a seamless mobile experience. Additionally, initiatives under the Belt and Road Initiative (BRI) and rural e-commerce regulations have expanded the consumer base, fostering product diversity and solidifying the industry's long-term growth.

Written by:

*Dr Iqbal Survé

Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN

*Cole Jackson

Lead Associate at BRICS+ Consulting Group

Chinese & Latin American Specialist

**The Views expressed do not necessarily reflect the views of Independent Media or IOL.