BMW Champions AI in China’s Auto Revolution
Introduction to a Digital Era
On May 8, 2024, BMW Brilliance Automotive (BBA) celebrated a substantial achievement in its Shenyang facility—the completion of its 6 millionth vehicle. This milestone represents not just a number, but a bold leap into a future firmly anchored in artificial intelligence (AI). As BMW Group’s senior executive, Franz Decker, pointed out, the rapid advances in AI within China are becoming pivotal in shaping the global digital landscape for the automotive sector.
Photo of the roll-off ceremony of the 6 millionth car produced by BMW Brilliance Automotive in Shenyang.
A New IT Hub in Nanjing
In July, BMW took a significant step by launching its first IT center in China—the largest in Asia—located in Nanjing, Jiangsu province. This facility is designed to harness advanced technologies such as AI to deliver digital solutions aimed at enhancing BMW’s operational efficiencies across its global production, sales, and after-sales networks.
Bolivia: A Leap Forward
Decker emphasized, "China not only leads the world in the application of digital technologies, but also demonstrates remarkable vitality in building a thriving ecosystem for digital innovation." This collaborative effort underscores BMW’s commitment to harnessing local innovations to propel its digital transformation both regionally and globally.
Embracing AI Integration
China’s progressive adoption of AI technology is evident in BMW’s operations. In 2024, the company’s “JoyCode” AI tool achieved an impressive 30% boost in code generation efficiency, a feat that mirrors the innovative strengths of China itself.
Partnerships with Pioneers in Technology
Furthermore, BMW is forging deeper partnerships with prominent local tech firms. Collaborations range from co-developing advanced driver-assistance systems with autonomous driving startup Momenta, to creating a customized AI engine with Alibaba, leveraging the Tongyi large language model, and integrating DeepSeek into its AI-powered personal assistant.
Nanjing: A Gateway to Innovation
Decker added, "We are moving into a new generation of cars and solutions," highlighting that Nanjing is a key player in this technological advancement. The city’s infrastructure and talent pool serve as a solid foundation for continued innovation in IT, driving the automotive sector forward.
Global Companies Eyeing Smart Manufacturing
It’s not just BMW cornering the market. Global firms are increasingly embedding themselves in China’s smart manufacturing ecosystem. On July 30, Dassault Systemes, a software giant, established its new subsidiary in Nanjing. With two decades of experience in China and around 60,000 local clients, this move marks significant expansion in offering software-as-a-service (SaaS) platforms tailored for digital manufacturing solutions.
Addressing Diverse Industries
Initially, Dassault Systemes will focus on smart manufacturing and steel industries, with plans to broaden their service reach into sectors like aerospace and biopharmaceuticals. Xu Feng, vice-mayor of Nanjing, elaborated on how the demand for digital transformation in these fields aligns perfectly with the technological strengths of Dassault Systemes.
Jiangsu: A Digital Transformation Hub
As one of China’s key manufacturing hubs, Jiangsu province is at a pivotal juncture in its digital transformation journey. The region is attracting substantial foreign investment, especially centered on R&D and advanced manufacturing projects.
Record Foreign Investment
In a significant development, $11.54 billion in foreign investment was recorded in Jiangsu during the first half of 2025, solidifying its standing as a leader among provincial regions in China.
A Committed Partnership Approach
Samson Khaou, executive vice-president of Dassault Systemes, credited the company’s success in China to its steadfast commitment to localization. He stated, "Our growth stems from the ‘In China, For China, With China’ philosophy." This strategy enables the incorporation of global best practices into China’s industrial transformation.
Long-term Confidence from Foreign Firms
A recent survey conducted by the French Chamber of Commerce in China revealed that 60% of French companies have been operating in China for over a decade, illustrating strong long-term confidence in the market. Moreover, 25% of these firms plan to increase their investments in China by 2025, particularly focusing on high-end manufacturing and digital initiatives.
Surpassing Investment Targets
Chinese Vice-Minister of Commerce, Ling Ji, announced that China has exceeded its investment attraction target, achieving $700 billion for the 14th Five-Year Plan period ahead of schedule. By June 2025, the actual foreign direct investment has reached a staggering $708.73 billion, with a total of 229,000 new foreign-funded enterprises established.
Foreign Direct Investment: A Growing Trend
Ling noted a marked increase in foreign investments in high-tech sectors since 2020, with multinational companies prominently establishing regional headquarters and global R&D centers within China.
Policies to Encourage Reinvestment
New policy initiatives are also promoting this trend. A recent directive from the National Development and Reform Commission has introduced incentives aimed at encouraging foreign firms to reinvest in China. These measures prioritize streamlining project approvals, optimizing land use, easing foreign exchange utility, and extending financing channels.
Local Performance Fuelling Expansion
The ongoing strong local performance is a major driver for foreign companies increasing their presence in China. At Bosch and Siemens’ smart washing machine factory in Jiangsu, bolstered by 5G and the Internet of Things (IoT), a new product rolls off the production line every 24 seconds.
Commitment to Research and Development
Simon Song, president of BSH Home Appliances Greater China, reiterated the company’s commitment to the Chinese market, revealing plans to invest over 3 billion yuan (approximately $420 million) in R&D within the next six years.
Conclusion: A Bright Future Ahead
As exemplified by companies like BMW and Dassault Systemes, China’s embrace of AI and digital innovation is not only reshaping industries but also attracting significant global investment. With a thriving ecosystem fostering local and foreign collaboration, China stands poised to redefine the global landscape of technology and manufacturing. The future looks bright, thanks to innovative partnerships and a dedication to excellence in digital transformation.
