Economic Watch: AI terminal push set to empower China's new tech consumption

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BEIJING, March 4 (Xinhua) -- Earbuds providing real-time bidirectional translation and simultaneous interpretation, speakers featuring a digital assistant capable of consecutive conversations, and air conditioners with flexible airflow functions.

These are among the new products released by some of China's tech firms, and while coming from different brands, they share one prominent feature: empowered by artificial intelligence (AI).

Amid the recent AI boom, accelerated by the application of DeepSeek, many Chinese consumer electronics and home appliance manufacturers have raced to incorporate AI technologies into their products in a bid to tap the huge potential of the new consumption market.

China's tech firm Xiaomi said last week that it will spend about one quarter of its 2025 research and development investment in AI-related fields. Honor, another well-known smart device maker, announced on Monday its strategy of becoming a leading global AI terminal ecosystem company.

"The AI revolution will reshape a new paradigm in the terminal industry, fundamentally transforming our productivity, society and even culture in unprecedented ways," said Honor CEO Li Jian.

Global market research firm International Data Corporation (IDC) forecast that shipments in China's smart terminal market will grow by 4 percent in 2025, with total shipments of AI personal computers, AI tablets and AI smartphones expected to increase by 20 percent year on year.

In addition to traditional consumer electronics, the augmented reality (AR) glasses are set to become the next focal point in smart terminal integration, IDC noted.

Rokid, a technology company based in east China's Hangzhou, has gained market attention recently for its new AR glasses that enable wearers to deliver speeches smoothly by playing the script thanks to AR technologies.

On e-commerce platforms, "AI Voice" has become a filter option for home appliances such as televisions. Many consumers indicated in product reviews that smart features are a key consideration when making purchasing decisions.

Hisense has officially integrated DeepSeek AI services in its television products, making its TV products capable of DeepSeek-based smart conversations. Other major TV manufacturers, including Changhong, Skyworth and TCL, have announced the incorporation of the DeepSeek AI service in select products as well.

The Chinese government has voiced support for the development of the AI terminal sector to leverage its role in boosting consumption.

Last month, a State Council executive meeting called for enhanced efforts to promote AI-related spending and develop new consumer products, scenarios and trends.

Chinese tech hub Shenzhen announced an AI terminal industry development plan on Monday, aiming to lift the market scale to over 800 billion yuan (about 111.52 billion U.S. dollars) by 2026, with the output of AI terminal products surpassing 150 million units.

This initiative also seeks to build more application scenarios for AI terminal products in fields such as smart manufacturing, smart finance, smart cities, smart elderly care and smart governance.

AI-empowered consumption not only reconstructs consumption experience through technological empowerment, but also stimulates demand and supply through technological integration, said Lao Guoling, head of the research center for e-commerce with Shanghai University of Finance and Economics.

"It is expected to become a crucial link connecting domestic demand growth and consumption upgrading," Lao added. Enditem

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