China's manufacturing and modern service sectors recorded accelerated growth in early 2025, driven by rebounding consumer demand and breakthroughs in artificial intelligence (AI), according to industry analysts.
Data from the first two months of the year shows notable expansion in high-tech industries and smart manufacturing, with sectors like robotics, electric vehicles, and AI-powered logistics systems leading the charge. Shi Fanqi, an economics expert at Peking University, highlighted the dual role of ‘domestic consumption recovery’ and ‘cutting-edge AI adoption’ in sustaining momentum. ‘Businesses integrating AI into production lines are achieving efficiency gains that were unimaginable five years ago,’ Shi explained.
The growth aligns with broader trends across Asia, where nations are leveraging AI to address labor shortages and supply chain complexities. Analysts suggest this could position China as a key innovation hub for emerging markets in Southeast Asia and beyond.
For investors, the resurgence signals opportunities in green technology and automation, particularly as the Chinese mainland reinforces its ‘dual circulation’ economic strategy emphasizing both domestic and international markets. Meanwhile, logistics firms report surging demand for AI-driven inventory systems, reflecting shifting global trade patterns.
As factories modernize and consumer spending rebounds, experts anticipate sustained growth in 2025, though caution that geopolitical uncertainties and energy transitions remain critical variables.
