While the US' AI companies have repeatedly made headlines with historically high valuations, some keen-eyed investors have been making money in China's AI sector, which has also been on the rise.

Thanks to the success of DeepSeek and other native large language models (LLMs), Grace Tam, chief investment adviser at BNP Paribas (BNPP) Hong Kong, says she had expected the "nourishing policies" for AI and digital consumption that were adopted as part of China's 15th five-year plan at the plenum on October 20-23.

At the plenum, minister of science and technology Yin Hejun said China had boosted its investment ratio in basic technological research and was looking to expand cross-industry applications of AI by increasing computing power and advanced chip production, while strengthening legal frameworks, ethical standards and international cooperation.

"We see robust secular growth opportunities in China's AI sector," says Tam, noting that the country's AI market - already valued at over US$97.5 billion as of mid-2025 - continues to benefit from policy consistency and an ecosystem designed to enable scale. The sector's ongoing transformation is marked by government coordination, capital strength and global ambition. "The goals are to enrich digital consumption, support research and development, incubate innovative companies, and ensure balanced supply and demand," she says.

She notes that China's State Council has introduced an AI+ Action Plan and an AI+ International Cooperation Initiative to accelerate the integration of artificial intelligence into the nation's economy and society.

But Tam believes that investors should be looking beyond LLMs to sectors where China may have advantages over the US, such as in the manufacturing of real-world appliances using sophisticated integration with AI.

"AI-native devices such as AI smartphones, AI robots, wearable devices, desktop 3D printers, AI household appliances, network-connected vehicles, digital education, AI healthcare, digital entertainment and e-commerce are the areas with opportunities," she says.