Updated
Updated · Global Times · Jul 12
China's Computing Card Market to Reach 1.44 Trillion Yuan by 2029 as AI Funding Surges
Updated
Updated · Global Times · Jul 12

China's Computing Card Market to Reach 1.44 Trillion Yuan by 2029 as AI Funding Surges

2 articles · Updated · Global Times · Jul 12

Summary

  • 1.44 trillion yuan ($212 billion) — that is the projected size of China’s domestic computing card procurement market by 2029, according to a forecast cited by China Media Group.
  • Surging demand for computing power is driving the outlook, with investors treating chips and computing networks as core infrastructure for AI commercialization and the broader digital economy.
  • 300 billion yuan in financing flowed to Chinese AI start-ups in the first half of 2026, already exceeding all of 2025; MiniMax alone raised HK$16 billion, while Moonshot AI sought fresh funding at a $31.5 billion pre-money valuation.
  • A semiconductor-focused investor cited by CMG said a 250 million yuan early investment in a GPU chip company has returned 150 times, reinforcing expectations that major listed AI firms could emerge.
  • Policy support is adding momentum: China’s 2026 Government Work Report pledged more funding and risk-sharing mechanisms for future industries, including embodied AI, quantum technology and 6G.

Insights

With its data centers largely empty, is China's trillion-yuan AI hardware boom a strategic success or a spectacular bubble?
Did US chip sanctions backfire, creating a self-sufficient Chinese tech titan ready to dominate the global AI market?
As US firms adopt cheaper Chinese AI, are they funding the rise of their main technological competitor?