China’s AI effort widened the wealth gap and tested the push for “common prosperity.”

China’s AI effort widened the wealth gap and tested the push for “common prosperity.”

By South China Morning Post
Publication Date: 2026-05-10 00:00:00

China wants artificial intelligence to become a new engine of growth, powering everything from modernizing factories to scientific discoveries. But outside the country’s technology hubs, the economic benefits promised by AI may be harder to realize.

Recent studies suggest that AI will widen regional divides. Large cities with extensive talent, capital and innovative companies are best suited to adopting the technology, while smaller cities and rural areas may struggle to keep up.

Analysts say the emerging divide could worsen regional inequality in China, where wealth is largely concentrated on the coast even as Beijing seeks to build a fairer society under the banner “common prosperity”.

“We will inevitably find that the gains are not equal,” said Lynn Song, chief Greater China economist at ING. “Those most directly connected to the core areas of China’s AI supply chain will benefit more.”

The capital Shanghai and Shenzhen are expected to…