China and the United States are shaping a "complementary competition" across the global artificial intelligence value chain, an industry report said on Tuesday, underscoring that the rivalry between the world's two largest economic powers is increasingly defined by structural interdependence.

According to the Global AI Enterprise Technology Innovation Index Report 2026, released by the Bayuegua Institute of Science and Technology Innovation, a Beijing-based tech think tank, China is home to 51 of the world's top 100 AI companies, while the US has 37. This combined 88 percent share reinforces a dual-core structure, in which Europe plays a secondary role and other regions fill the gaps, it said.

The report delved into the unique yet interconnected positions that China and the US occupy in the AI industrial chain.

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China has a numerical advantage in foundational layers, large models and application deployment, with Chinese companies demonstrating strong commercialization capabilities, it said. Of the top 40 companies on the AI application list, 21 are from China, reflecting the nation's focus on expanding real-world application scenarios.

By contrast, the US has a clear lead in the framework layer, dominating open-source ecosystems and core development tools, and retaining control over high-end chips in the foundational layer.

According to the report, this differentiated structure defines a "complementary competition" — a system in which China excels at rapid deployment and industrial integration, while the US provides the underlying architecture and key enabling technologies.

More than half of the leading AI companies are located in just four cities — San Francisco in the US and Beijing, Shanghai and Shenzhen, Guangdong province, in China. This highlights the industry's reliance on dense ecosystems of talent, capital and infrastructure.

Beijing hosts 26 of China's top AI enterprises, accounting for more than half of the national total, while San Francisco dominates the US AI landscape with 24 companies.

According to the 2026 Government Work Report, China will "advance and expand the 'AI Plus' initiative" and, for the first time, it will "create new forms of smart economy".

Cheng Shi, chief economist at ICBC International Holdings, noted that AI is being elevated within the national development strategy, evolving from a technological initiative into a major force that is reshaping economic structures.

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"This indicates that AI is moving beyond isolated applications toward a deeper restructuring of industrial ecosystems in China," he said.

In an earlier interview, Bai Chong-En, dean of the School of Economics and Management at Tsinghua University, said that it is important for China to find strong application scenarios for AI in order to advance the technology and keep pace with the US.

"For China, creating a new form of intelligent economy is ultimately about closely integrating AI tools with industrial and broader societal development, enabling their deployment in a wider range of scenarios to generate greater value," Bai said.

Contact the writers at chengyu@chinadaily.com.cn