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By the end of 2025, China’s internet user community had grown to 1.125 billion, helping the country achieve a national penetration rate of 80.1%. This wonderful progress is highlighted in an official industry report, showcasing the continued growth and vibrancy of China’s digital economy.
The figures were published in the 57th Statistical Report on China’s Internet Development, released in Beijing by the China Internet Network Information Centre (CNNIC). The report states that both the number of users and overall access levels increased steadily, while the gap between urban and rural connectivity continued to narrow.
Internet penetration has increased by 9.7 percentage points since the start of China’s 14th Five-Year Plan in 2021. Rural access rose to 69.5% over the same period, marking an increase of 13.6 percentage points and signalling broader inclusion within the country’s expanding digital infrastructure.
Older citizens are also coming online in greater numbers. The report found that internet use among people aged 60 and above reached 53.7%, suggesting that digital services are becoming more integrated into everyday life across all age groups.
Expansion of digital infrastructure
China has invested heavily in next-generation networks, constructing nearly 4.84 million 5G base stations nationwide. Coverage now reaches all townships and approximately 95% of administrative villages, while over 330 cities are served by more advanced 5G networks. The country has also bolstered its computing capacity.
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According to the report, 42 intelligent computing clusters — each equipped with more than 10,000 graphics processing units — have been established, with total computing power surpassing 1,590 EFLOPS. This places China among the global leaders in infrastructure supporting artificial intelligence. Wang Changqing, a research fellow at CNNIC, said the foundations established by high-speed networks and computing resources are accelerating the development of emerging sectors such as AI and the digital economy.
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Surge in generative AI adoption
One of the report’s most striking findings is the swift adoption of generative artificial intelligence. By December 2025, the number of users had increased to 602 million — a year-on-year rise of 141.7%. Penetration reached 42.8%, up 25.2 percentage points from the previous year.
The data indicates that generative AI is becoming more embedded in everyday life and business activities, emerging as a key driver of China’s digital and industrial transformation.
Role of small businesses
The report also highlighted the importance of small and medium-sized enterprises (SMEs) in strengthening supply chains and supporting innovation. China is home to more than 60 million SMEs, which account for the vast majority of businesses and employ a large share of the workforce.
There are over 17,600 so-called “little giant” firms—highly specialised companies that focus on advanced technologies and niche markets. Alongside them, there are more than 140,000 specialised and innovative enterprises, and over 600,000 technology-driven firms, all contributing to a vibrant and dynamic industry landscape.
Nearly 6,000 of these companies operate in emerging fields such as quantum technology, artificial intelligence and the low-altitude economy, reflecting how improved connectivity is enabling broader participation in high-tech industries.
Mr Wang said that under the government’s “AI Plus” initiative, smaller firms are expected to play a central role in applying artificial intelligence, benefiting from policy support, including fiscal incentives and improved access to data.
Sustaining digital growth
The report concluded that continued investment in infrastructure and digital skills will be crucial to maintaining momentum in internet adoption and supporting long-term economic growth.
With connectivity now reaching four out of five people and AI usage rising rapidly, China appears to be deepening its shift towards a more digitally driven economy — one in which technological capability is increasingly tied to industrial competitiveness and future growth.
