Despite having one of the world’s most tightly regulated internet environments, China has actively made efforts to grow its digital economy by reinforcing its digital infrastructure, with its internet user base surpassing 1.125 billion by the end of 2025.
The figure was released by the China Internet Network Information Center (CNNIC), marking yet another significant milestone for the Xi Jinping administration as global economies double down on their initiatives to catch up with the rapidly evolving digital market.
China has maintained the top spot for the largest number of internet users globally since 2008, when it toppled the United States, which sits third in the 2026 data with 322 million internet users. India, meanwhile, came in second with 806 million.
This puts China’s internet penetration at 80.1%, the official industry report stated, adding that the broadening use of smartphones in the country largely contributed to the milestone. Currently, there are 1.25 billion mobile subscribers in the country.
Building a more inclusive internet forms only part of China’s digital economy. According to the CNNIC, generative artificial intelligence (AI) now plays a key role in citizens’ daily life and work, with the adoption rate standing at 42.8%, a year-on-year increase of 25.2 percentage points. This equates to 602 million users, a 142% increase from 2024.
While the U.S. leads in terms of global compute power for AI, China remains a dominant figure in the sector, with more than 6,000 AI enterprises registered last year and an AI market projected to exceed 1.2 trillion yuan (around $171.39 billion) in 2025.
China’s AI applications have also expanded beyond the Information Technology (IT) and software development industries to include key sectors like steel, non-ferrous metals, power and telecommunications, quality inspection, customer service, and product research and development, said the Ministry of Industry and Information Technology.
“Together with leading companies, they are building a healthy ecosystem of collaboration among large, medium and small firms, enabling AI to truly permeate the ‘capillaries’ of the real economy,” said CNNIC official Wang Changqing, as quoted by local daily Xinhua News Agency.
The younger generations were recognized as a key driver of AI adoption in China, but middle-aged and older groups are also catching up with the technology, utilizing AI for image and video generation and as personal assistants.
While China rapidly adopts AI, it remains aware of the risks carried by the technology and is treading the ecosystem carefully. In 2025, the Cyberspace Administration of China issued draft rules centered on regulating AI systems that interact with humans and exhibit human-like behavior in a bid to safeguard users from potential complications that may arise from utilizing the technology.
“We need to seize the strategic opportunities presented by AI development while recognizing the importance of strengthening technology management and ethical standards to ensure its safe, trustworthy and sustainable growth,” the CNNIC stated in its report.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
Watch: The AI wave is here—are marketers ready?
Source: https://coingeek.com/china-champions-internet-inclusivity-as-user-base-hits-1-125b/
