I've been a product manager at one of China's biggest tech firms. Here's how Chinese AI products are built differently.
Business Insider
February 23, 2026
AI-Generated Deep Dive Summary
Yilin Zhang, a former product manager at Meituan and now at AI startup Kuse, highlights key differences in how AI products are developed and marketed in China compared to Western markets. In China, AI initiatives often prioritize cost efficiency and open-source models due to domestic competition and resource constraints. This contrasts with Western approaches that focus on high-value tasks and desktop-first interfaces for professional use. Additionally, Chinese tech companies emphasize rapid iteration and user-centric design, driven by intense competition and a focus on scaling active usage through free or freemium AI tools.
The differences stem from distinct market dynamics. Chinese users generally have lower willingness to pay for software, leading to mass-market AI products like Doubao being free or heavily subsidized. This forces companies to prioritize user acquisition and engagement over premium pricing models. Meanwhile, Western AI products often target niche, high-value professional tasks, with interfaces designed for desktops and work environments. These distinctions reflect broader market trends where Chinese tech firms have historically focused on domestic competition rather than global expansion.
Zhang also notes the growing shift toward AI startups in China, particularly among young graduates who are choosing entrepreneurship over traditional paths like joining Big Tech or becoming civil servants. This trend is fueled by the rapid evolution of AI and the demand for more agile, innovative solutions. As a result, AI startups are emerging as viable alternatives to large companies, offering faster iteration cycles and new opportunities for tech talent.
The rise of AI in China has significant implications for global business strategies. Companies must consider these market-specific differences when expanding into or competing with Chinese tech firms. The emphasis on cost efficiency, user-centric design, and rapid innovation in China highlights a unique ecosystem that could shape future AI developments worldwide. Understanding these dynamics is crucial for businesses aiming to stay competitive in an increasingly interconnected tech landscape.
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Originally published on Business Insider on 2/23/2026