As generative artificial intelligence (AI) becomes increasingly integrated into the daily lives and professional activities of millions, China is reinforcing its regulatory and institutional frameworks to ensure the sector’s healthy and sustainable development. According to a recent report by the China Internet Network Information Center (CNNIC), the number of generative AI users in China surged to 515 million by June 2025, marking a significant increase of 266 million since December 2024. This exponential growth underscores the technology’s transition from experimental use to widespread practical application. Liu Yulin, director of the CNNIC, highlighted that AI has evolved from a laboratory concept into a transformative force reshaping production and lifestyle across the nation. Zhang Xiao, deputy director of the CNNIC, emphasized the growing popularity of domestically developed large AI models, which are driving the intelligent transformation of various industries. The report reveals that the most utilized functions of generative AI include answering questions, office assistance, and content creation, such as generating images and videos. Notably, younger, middle-aged, and highly educated individuals form the core user base, with those under 40 accounting for 74.6% of users and 37.5% holding at least a junior college degree. Social media platforms like Weibo have become hubs for users to share their positive experiences with AI, from enhancing work efficiency to providing emotional support. The rapid adoption of AI has also spurred a surge in AI-related products, with 538 generative AI services registered with the Cyberspace Administration of China by August 2025, a 192-service increase since March. China’s leadership in AI innovation is further evidenced by its 1.58 million AI-related patent applications, representing 38.58% of the global total. To ensure the responsible development of AI, China has introduced a series of policies and regulations, including interim measures for managing generative AI services and guidelines for establishing a national standardization system. Zhang Xiao stressed that these measures provide a robust institutional foundation for the sector’s orderly growth, supporting China’s broader goals of high-quality development. Legal experts have also advocated for risk-based classification and regulation of AI applications, reflecting the nation’s proactive approach to balancing innovation with governance.