The AI development in China and elsewhere will have ramifications in transforming manufacturers not just in China but in Asia and the rest of the world. There are opportunities and challenges for businesses as they embrace digital transformation. How China, Asia and the rest of the world can work together to achieve a win-win situation. China’s policy on AI is earmarked in the 14th Five-Year Plan (2021-2025) where the State Council issued a plan that set benchmarks for China’s AI sector - with the value of core AI industries predicted to exceed 1 trillion yuan (US$141 billion) and make the country the global leader in AI innovation by 2030. As an example, Tianjin is selected as one of the core cities to advance its AI technology. In 2018, Tianjin set up a 100 billion yuan fund to invest in AI technologies and it increased to 30 billion yuan fund to help build the city into an advanced manufacturing research and development hub.