CHONGQING -- The number of Chinese artificial intelligence (AI) companies has surged from just over 1,400 to more than 5,000 in the past five years, according to data released by the Ministry of Industry and Information Technology at the World Smart Industry Expo currently underway in Southwest China's Chongqing municipality.

China has set up over 40,000 smart factories, 11 national pilot zones for AI innovation and application, as well as 17 national demonstration zones for intelligent connected vehicle testing, said Xin Guobin, vice-minister of industry and information technology.

Xin added that a 60-billion-yuan (about $8.4 billion) national AI industry investment fund has been launched, accompanied by rules on AI ethics, China-BRICS center for AI development and cooperation, and over 240 standards for core AI technologies.

The China Internet Development Report 2021 noted that in 2020, there were only 1,454 AI companies in the country.

China has placed strong emphasis on promoting its AI industry. In 2017, the State Council released a development plan for the next generation of AI. This August, it followed up with guidelines on advancing the "AI Plus" initiative, designed to accelerate the building of an intelligent economy and a smart society characterized by human-machine collaboration, cross-sector integration, and shared innovation.

"The healthy development of China's AI industry derives from drawing on the valuable experience of early movers, and making full use of self-advantages like abundant data resources, a complete industrial system, broad application scenarios, and vast market potential," said Wan Gang, president of the China Association for Science and Technology.