China Doubles Down on AI, Tech Self-Reliance Amid US Competition

Beijing is intensifying its push for technological self-sufficiency, particularly in artificial intelligence (AI), as geopolitical tensions with the United States escalate. Premier Li Qiang outlined a strategy focused on “AI Plus” initiatives and overcoming key technological hurdles during the opening of the annual meeting of the National People’s Congress on March 5, 2026.

“AI Plus” Strategy: Integrating AI Across Industries

The Chinese government aims to deeply integrate AI into various sectors, including manufacturing, with a specific focus on “AI Plus” strategies. This involves combining and developing each industry with artificial intelligence technologies. Li Lecheng, Director of the Ministry of Industry and Information Technology, emphasized that “’AI plus manufacturing’ is not a choice, but a question that must be answered,” signaling a national commitment to this integration .

Focus Areas: Semiconductors, Robotics, and Emerging Technologies

China is prioritizing the development of new quality production capacity in key areas such as integrated circuits, aerospace, and biopharmaceuticals. Future industries receiving attention include future energy, quantum science and technology, embedded AI, brain-computer interface (BCI), and 6th generation (6G) communications. The goal is to foster the creation of “unicorn companies” in these fields.

Investment in Research and Development

China is significantly increasing its investment in science, and technology. Total investment in research and development by Chinese society exceeded 3.92 trillion yuan (approximately $547 billion USD) in the past year. Basic research investment reached 280 billion yuan (approximately $39 billion USD), representing 7.08% of the total R&D expenditure – a new all-time high .

Progress in Key Technologies

Premier Li Qiang highlighted China’s advancements in several key technologies, stating the nation is a world leader in the research and development and application of AI, biomedicine, robots, and quantum technology. He also noted breakthroughs in independent semiconductor research and development, and that China’s AI large-scale model is leading the global open-source ecosystem. Production of new energy vehicles, including electric vehicles, exceeded 16 million units last year.

Robotics Industry Growth

The AI core industry in China exceeded 1.2 trillion yuan (approximately $167 billion USD) in size last year, with over 6,200 companies operating in the sector. More than 300 types of humanoid robots have been released .

Financial Commitment

The central government’s financial expenditures in the field of science and technology are set to increase by 10% this year, reaching 426.4 billion yuan (approximately $59 billion USD) .

Strategic Context: Responding to US Restrictions

China’s emphasis on technological independence is largely driven by the desire to mitigate the impact of US restrictions on access to advanced technologies, such as semiconductors. The government views self-reliance in cutting-edge science and technology as a necessity to overcome these challenges.