SHANGHAI: Global companies are increasingly integrating China-developed artificial intelligence tools into manufacturing, logistics, product design and digital transformation as the country’s AI ecosystem moves beyond research into large-scale commercial use.
Companies including PwC, L’Oréal and Siemens are deploying AI systems in China to improve efficiency, reduce development time and test technologies that may later be used in other international markets.
PwC Opens AI Innovation Centre in Shanghai
PwC China recently launched an AI Innovation Centre in Shanghai to help businesses develop practical adoption plans and manage the challenges associated with digital transformation.
A PwC study ranked China among the leading global markets for the effective deployment of AI in the real economy.
Liu Yaxiao, head of the new centre, said a growing number of international clients were choosing Chinese open-source AI systems when upgrading their digital operations.
The trend reflects wider interest among multinational companies in China’s rapidly developing AI infrastructure, engineering talent and industrial applications.
L’Oréal Uses AI to Speed Up Logistics and Packaging
French cosmetics company L’Oréal has introduced AI-powered systems at its smart fulfilment centre in Suzhou, the group’s first facility of its kind globally.
Smart sorting equipment and packaging optimisation tools allow the centre to process around 7,000 consumer parcels per hour. The company says 99% of orders are processed within 48 hours.
At another facility in Shanghai’s Pudong New Area, L’Oréal uses AI to convert consumer insights into packaging design concepts within seconds. The same process previously took several weeks.
Vincent Boinay, president of L’Oréal North Asia and chief executive of L’Oréal China, said the country’s rapid development cycles, domestic innovation, policy support and expanding talent pool were important factors behind the company’s AI investment.
Siemens Deploys AI Agent on Electric Vehicle Production Line
German technology company Siemens presented its Eigen Engineer Agent at the 2026 World AI Conference in Shanghai.
The AI system is designed to support industrial automation engineers by responding to instructions given in everyday language.
Before its official launch, the system was deployed on an electric vehicle brake assembly line operated by CASMT Automation in Changzhou.
According to Siemens, the technology reduced programming time by around 30%, while equipment debugging time fell by a similar amount.
Vasi Philomin, executive vice president and head of data and AI at Siemens, said China’s large manufacturing base, rapid technology deployment and willingness among manufacturers to adopt new systems created favourable conditions for industrial AI development.
Policy Measures Encourage Foreign AI Investment
China has introduced a series of national and local policies aimed at encouraging foreign companies to invest in artificial intelligence research and applications.
Rules introduced in Shanghai encourage foreign-funded research and development centres to invest in emerging fields such as intelligent terminals and embodied intelligence.
Shenzhen has also adopted measures intended to attract international companies seeking to establish innovation facilities.
In July, China’s National Development and Reform Commission and other government departments released an action plan focused on expanding international AI cooperation.
Liu said the plan provided a framework for governance that combined safety requirements and regulation with international collaboration.
Manufacturing Base Drives New AI Applications
Analysts say China’s diverse industrial base is helping companies develop and test AI systems in real-world environments.
David Blair, vice president of the Center for China and Globalization, said competitive manufacturing clusters along China’s southeastern coast were expected to generate more industrial AI applications.
Einar Tangen, a senior fellow at the Center for International Governance Innovation, said China was sharing AI technologies with developing economies while also creating new commercial opportunities for global companies.
As multinational companies deepen their use of Chinese AI systems, China is emerging as both a development centre and a testing ground for technologies intended for wider international deployment.
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