Chinese President Xi Jinping has underscored the pivotal role of artificial intelligence (AI) in shaping the future of technology, likening its significance to that of the early Internet and the industrial revolution. During his first formal meeting with ministers for 2026, Xi characterized AI as an “epoch-making technological transformation.” His remarks highlight a strategic push by Beijing to establish Chinese firms as leaders in this rapidly evolving field.
In his address, Xi urged officials to overcome existing challenges that hinder the growth of domestic technology. He emphasized a comprehensive national strategy to bolster indigenous capabilities, ensuring that China remains competitive on a global scale. The focus on AI aligns with ongoing efforts to enhance the semiconductor industry, which is crucial for supporting technological advancements.
Domestic Innovations Driving Confidence
The Chinese government is buoyed by recent advancements from domestic firms such as DeepSeek. More than a year ago, DeepSeek introduced a large language model that rivals the leading tools from companies like OpenAI and Meta, but with significantly lower computational requirements—approximately eleven times less. This breakthrough has not only accelerated DeepSeek’s growth but has also reinforced Beijing’s belief in leveraging software advancements to navigate international trade restrictions.
Chinese officials are optimistic that coordinated efforts to deploy AI domestically can yield substantial results, despite limited access to high-end foreign technology. The current policy framework emphasizes the need for synchronized growth in AI and semiconductor sectors. Xi has cautioned provincial governments against reckless spending, advocating for the integration of AI into existing industries rather than complete overhauls of current infrastructure. Past initiatives led to excessive idle computing capacity, prompting authorities to sell surplus resources and enhance oversight on optimization.
Strategic Planning for the Future
Xi’s comments come at a critical time as China prepares for its 15th Five-Year Plan, which will span from 2026 to 2030. The plan aims to formalize China’s approach to “new productive forces,” with AI positioned at its core. This strategy not only seeks to modernize industry but also serves as a counterbalance in the technology race with the United States.
While Xi’s remarks reflect a strong commitment to maintaining China’s leadership in AI, the cautious tone also indicates an awareness of the inefficiencies and overcapacity within current systems. Policymakers are likely to focus on resource management alongside their technological ambitions, ensuring that advancements are both sustainable and effective.
The emphasis on a “whole-of-nation” approach underscores the importance of collective efforts in navigating the complexities of AI development. As China looks to solidify its position in the global technology landscape, the government’s strategy will play a crucial role in determining the pace and direction of its AI ambitions.
