‘I’m living’ is talking about right now. It’s your current action. It’s what you would say if it only became true recently, or was going to be temporary. ‘I live …’ is less tied to a certain time. It’s the tense we use for habitual activities - things that are true in the past and future. Of course, you can use other words to give them almost identical meanings. I live in China now. I just arrived last month. (The words ‘now’ and ‘last month’ fix the time period to be the same as we assume for ‘I’m living…’) This is very natural and very close in meaning to ‘I’m living …’

They have the same meaning but they feel quite different. The present participle ("living") is like an image, a photograph. It paints a picture. "Living in China" is an adjective phrase that describes you. These sentences are all of the form "I am ADJECTIVE": "I am happy" "I am young" "I am living in China" It may seem odd, but "living in China" really is an adjective clause. "Living" is an adjective. It is not a verb. It acts to describe you just like any other adjective. "I live in China" is more direct, more decisive. It uses a verb that actually states something. It is not merely descriptive. Since Chinese is your native language, you should try hard to use direct verbs more and use descriptive participles less. That is because your native language does not use verbs and the best way to learn to use them is to practice as much as possible.

Infinitive and definitive are the differences