China attracted an estimated USD 119 billion in AI investment over the last decade, supported by accelerating domestic funding and comparatively modest cross-border investment.
China has firmly established itself as the world’s second-largest AI investment market, but the gap with the U.S. remains substantial. China attracted an estimated USD 119 billion in disclosed AI investment over the past decade, compared with more than USD 1.2 trillion in the U.S., while still drawing almost twice as much as the third-ranked U.K.
What is changing is where China’s momentum is coming from. Domestic AI investment is estimated to reach USD 26 billion in 2026, nearly three times its 2021 peak, while cross-border investment remains relatively modest. Foreign capital is diversifying beyond the U.S., but China’s AI investment story is increasingly being driven from within.
China is building a large, increasingly self-funded AI ecosystem that is less dependent on foreign capital. That should support continued investment in AI infrastructure, applications and domestic technology capabilities even as the flow of international capital remains constrained.
Also by ANDAMAN PARTNERS:
ANDAMAN PARTNERS supports international business ventures and growth. We help launch global initiatives and accelerate successful expansion across borders. If your business, operations or project requires cross-border support, contact connect@andamanpartners.com.
ANDAMAN PARTNERS to Attend China Mining 2026 in Tianjin, China
ANDAMAN PARTNERS will attend the China Mining Conference and Exhibition in Tianjin, China, on 10-12 September 2026
ANDAMAN PARTNERS at the Singapore Institute of Directors Annual Conference 2026
ANDAMAN PARTNERS at the Singapore Institute of Directors Conference 2026 in Singapore on 28 August 2026
ANDAMAN PARTNERS Attended the Australia Governance Summit 2026 in Sydney
ANDAMAN PARTNERS Co-Founder Kobus van der Wath attended the Australia Governance Summit (AGS26) in Sydney, Australia.
China Is the World’s No. 2 AI Investment Market, Behind the U.S.
China attracted USD 119 billion in AI investment over the last decade, supported by accelerating domestic funding.
China Is Producing More While Investing Less in 2026
FAI has contracted for six consecutive months as private and construction spending weakens, while industrial output continues to expand.
China’s Foreign Investment Landscape Is Shifting, But Foreign Firms Retain a Major Trade Role
FDI inflows have moderated and the sector mix is evolving, while foreign-funded enterprises retain a substantial, though declining, share of China’s trade.
