Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)

2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)

📍Beijing, China🗓️ 20-22 March 2026
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China’s National Artificial Intelligence Strategy, Firm Adoption, and Short-Run Performance Effects

Authors
Cheng Peng Cheong1, *
1Guanghua School of Management, Peking University, Beijing, 100080, China
*Corresponding author. Email: 2300015830@stu.pku.edu.cn
Corresponding Author
Cheng Peng Cheong
Available Online 30 July 2026.
DOI
10.2991/978-94-6239-701-9_41How to use a DOI?
Keywords
Artificial Intelligence (AI); Industrial Policy; Firm Performance; AI Adoption
Abstract

Artificial Intelligence (AI) is becoming increasingly important in firms’ performances. This paper examines how China’s 2017 national AI strategy affects firm-level AI adoption and its short-run performance implications. This study constructs AI adoption intensity by counting AI-related words using A-shared list firms within the time period 2001 to 2024. A two-way fixed effects model is introduced to study the relationship between degree of adopting AI and degree of how firms performed. Results are that the initiative is effective in incentivizing more AI adoption, but more adoption in AI does not mean better financial performance of firms at least in the short-run. It is found that there is a negative association between AI adoption and firm performances. Heterogeneity and moderating analyses are further conducted to explore the relationship under different firms’ characteristics. The findings contribute to the literature on the area of influences of China’s AI initiative on corporate AI adoption and its subsequent impact. Future researches could focus on mechanism analysis.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
30 July 2026
ISBN
978-94-6239-701-9
ISSN
2352-5428
DOI
10.2991/978-94-6239-701-9_41How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Cheng Peng Cheong
PY  - 2026
DA  - 2026/07/30
TI  - China’s National Artificial Intelligence Strategy, Firm Adoption, and Short-Run Performance Effects
BT  - Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026)
PB  - Atlantis Press
SP  - 397
EP  - 404
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-701-9_41
DO  - 10.2991/978-94-6239-701-9_41
ID  - Cheong2026
ER  -