China’s AI drive seen widening wealth gap, testing ‘common prosperity’ push

China’s 'AI-plus' initiative, launched in August 2025, aims to transform AI into a key economic driver, targeting a 12.5% share of the country’s GDP from the digital economy by 2030. However, analysts warn the strategy could exacerbate inequality, with wealthier cities like Beijing, Shanghai, and Shenzhen positioned to lead AI adoption due to their talent pools, capital, and government support. Smaller cities and rural areas may struggle to access the same benefits, according to recent studies highlighting regional disparities in AI integration. The plan seeks to integrate AI across industries and society, but experts like Lynn Song, chief economist for Greater China at ING, note that gains will likely be uneven. Those directly connected to China’s AI supply chain—primarily in major urban centers—will reap the most rewards, while less-connected regions face slower progress. Liam Sides, an associate director at Oxford Economics, emphasizes that cities with established tech clusters, strong universities, and proactive local governments will drive adoption. Despite government efforts to promote 'common prosperity,' the AI push risks widening economic divides. Policymakers set ambitious targets during the March 'two sessions' meetings, but the focus on AI-driven growth may concentrate resources in already prosperous areas. Rural regions, lacking the infrastructure and resources of major cities, could fall further behind, undermining the goal of equitable development. The disparity is particularly concerning as AI becomes a cornerstone of China’s economic strategy. While the technology promises advancements in manufacturing, scientific research, and other sectors, its uneven distribution could deepen regional inequalities. Experts urge policymakers to address these challenges to ensure broader participation in the AI-driven economy.