As the 2026 World Artificial Intelligence Conference (WAIC) kicks off in Shanghai, new data released by the National Bureau of Statistics (NBS) paints a picture of an AI sector experiencing explosive, exponential growth. The statistics, covering the first half of 2026, indicate that artificial intelligence is rapidly transitioning from experimental pilot programs to widespread commercial deployment across the Chinese economy.
The most striking metric released by the NBS is the sheer volume of AI usage. According to NBS spokesperson Wang Guanhua, China’s average daily token usage, the fundamental unit by which AI models process information, has reached “several hundred trillion.” This represents a staggering acceleration; as recently as early 2024, daily token calls were estimated at around 100 billion. This thousand-fold increase in just over two years underscores the rapid integration of large language models into enterprise and consumer applications.
The Hardware Foundation of the AI Boom
The surge in token usage is underpinned by a massive expansion in China’s computing infrastructure and semiconductor manufacturing capabilities. Despite ongoing U.S. export controls aimed at restricting access to advanced AI chips, China’s domestic semiconductor industry is operating at unprecedented scale.
The NBS reported that China’s integrated circuit output surged 23.1 percent year-on-year in the first half of 2026, reaching 279.8 billion units. This equates to producing over 1.5 billion chips every single day. While not all of these are advanced AI processors, the sheer volume demonstrates the momentum driving China’s semiconductor sector and its ability to support the broader tech ecosystem.
This hardware foundation is critical for sustaining the growth of domestic AI models. As companies like DeepSeek ramp up hiring to build their own compute infrastructure, the availability of domestic silicon, such as Huawei’s Ascend series, is becoming increasingly vital. The ability to manufacture chips at scale, even if they are not at the absolute cutting edge, provides the necessary computing power to fuel the hundreds of trillions of daily token calls.
AI as a Driver of Industrial Growth
The NBS data also highlights the extent to which AI is driving growth in related industries. Manufacturing sectors tied to AI, such as intelligent in-vehicle equipment, maintained growth rates exceeding 30 percent in the first six months of 2026. This suggests that AI is not just a software phenomenon but is actively reshaping physical manufacturing and product development.
The integration of AI into manufacturing is a key component of Beijing’s strategy to cultivate “new quality productive forces.” The World Economic Forum recently recognized several new “lighthouse factories”, facilities that excel in deploying advanced technologies, and over half of the 16 newly designated factories are located in China. This recognition validates the country’s efforts to use AI and digital technologies to upgrade its traditional industrial base.
Furthermore, the economic impact of this technological shift is becoming increasingly apparent. Preliminary calculations by the NBS indicate that new growth engines, including high-end manufacturing and the digital economy, contributed nearly half of China’s overall industrial growth in the first half of the year.
The Rise of the AI Terminal
Looking ahead, the data suggests that 2026 will be a tipping point for consumer AI hardware. Industry forecasts anticipate that sales of AI smartphones and AI computers will surpass those of non-AI products for the first time this year in China. This follows a strong 2025, where annual shipments of AI smartphones and other intelligent terminals exceeded 100 million units.
The rapid adoption of AI terminals is being driven by innovations from domestic companies. The recent unveiling of StepFun’s STEPX Neo, the world’s first L3 certified AI smartphone, exemplifies the push to integrate advanced agentic capabilities directly into consumer devices. As these devices become ubiquitous, they will further drive token usage and embed AI more deeply into daily life.
The statistics released ahead of WAIC 2026 confirm that China’s AI sector is not merely surviving under U.S. sanctions; it is thriving. The exponential growth in token usage, the massive scale of semiconductor production, and the rapid adoption of AI hardware all point to an ecosystem approaching critical mass. As the global AI race intensifies, China’s ability to deploy these technologies at scale across its vast economy may prove to be its most significant advantage.