Investing in China's AI Startups: What Foreign Investors Should Know Introduction China's artificial intelligence sector stands at the forefront of global technological transformation, with projections indicating that total AI investment in the country will reach $98 billion in 2025, over half of which is backed by government initiatives. This surge reflects not only Beijing's strategic ambition to integrate AI into 90 percent of its economy by 2030 but also a burgeoning ecosystem of innovative startups driving breakthroughs in generative AI, autonomous systems, and industrial applications. For foreign investors, the allure is undeniable: access to a market where AI adoption is accelerating at unprecedented speeds, fueled by a talent pool that produces more engineers annually than the entire United States combined, and a policy landscape that prioritizes self-reliance amid U.S.-China tech tensions. Yet, this opportunity comes wrapped in complexities—geopolitical risks, regu...
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