China Tax News: From World Factory to Global Smart Manufacturing Hub - Dongguan AI Industry Needs Multi-Dimensional Support

Dongguan's artificial intelligence industry has been growing quickly. In May the city published an overall plan for building a global smart manufacturing center and launched a special action to combine AI with manufacturing. Tax data show that more than 10,000 tax-registered businesses in Dongguan now work in AI: industry sales revenue grew about 6.8% in 2025 and about 2.3% in the first half of 2026, and the number of companies with more than 1 billion yuan of revenue rose from 23 to 28. Local server output reached nearly 600,000 units, with a related supply chain worth close to 100 billion yuan and nearly 300 companies. Supporting sectors such as liquid cooling and high-end circuit boards are also busy: Shengyi Technology, the world's second-largest copper-clad laminate supplier, reported first-half revenue of more than 19 billion yuan, up about 50%; in the first half, 20 large liquid-cooling manufacturers in Qingxi town raised combined revenue by 35%, while seven such firms in Qishi town grew 34%. Exports are strong as well, with AI-related export value up 21.5% in the first half, and companies working on algorithm models more than doubling their export value. Dongguan has 34 industrial categories and more than 200,000 industrial enterprises; the local tax authority has issued measures to support advanced manufacturing, using data to follow how companies adopt AI, to sort out tax compliance points and to provide tailored services. The article notes that the city still relies on outside suppliers for key chips and core industrial software and needs stronger supporting capacity and talent, and suggests further support in scenarios, technology, talent and the industrial ecosystem.