China has seen a surge in the number of companies developing AI technology

According to Chinese analysts, in 2020, the country began an explosive registration of companies in the field of artificial intelligence. There are many reasons for this, but the main reason may be the significantly increased flow of money from the authorities of the Celestial Empire. Americans fear China’s AI build-up for good reason. China’s scientific potential is growing, and the country spares no expense on it.

According to Qichacha analysts, China now has 439,000 registered AI-related companies. In 2020, the number of new organizations in the field of AI was 172 thousand, and in the first half of 2021 such organizations were registered another 153 thousand. Thus, the growth of registrations for the year was 150.8%, and the year is not over yet!

The transition from 2019 to 2020 showed an increase in the number of new AI companies in China at 292.8%, and 2021 promises to be even more “fruitful” for the field of AI in China.

The issue of finance is extremely interesting. Most Chinese AI companies declare quite large share capital. Apparently, local investors are willing and invest a lot of money in AI development. For example, companies with registered capital of less than 1 million yuan ($155,000) account for only 24% of the registered companies, while those with registered capital between 1 and 5 million yuan account for 39%, and those with capital over 5 million yuan (from $755,000 and more) account for 37%.

It is also interesting to note that the most AI companies in China are registered in three neighboring provinces on the southeast coast of the country: Guangdong, Jiangsu and Zhejiang. There are 64,000, 50,000 and 40,000 AI companies in each, respectively. Programmers have always been drawn to the south and to the sea, which in the case of Chinese regional development programs is further supported by subsidies for provincial economic development.