Beijing plans to allocate tens of millions of US dollars in subsidies to build a domestic AI supply chain.

The Yizhuang Development Zone aims to create an AI industry ecosystem worth 80 billion yuan (US$11 billion) by the end of 2025.

This initiative emphasizes the use of Chinese-made semiconductors, operating systems, and open-source software to achieve technological self-reliance amid US export restrictions.

A key focus is the rapid development of high-performance GPUs and chips based on the RISC-V architecture.

Funding will also support innovations in quantum computing, optical computing, and biological intelligence, with up to 10 million yuan (US$1.38 million) allocated for each.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s self-reliance strategy follows a decades-long pattern with renewed urgency

Beijing’s latest AI initiative represents the continuation of a strategic approach to technology independence that dates back to the Mao era.

The concept of “self-reliance” (自力更生) has been revived under Xi Jinping as a cornerstone of national rejuvenation policy, particularly as external pressures increase 1.

This pattern of pursuing technological independence has been recurring throughout China’s modern history, with previous initiatives like the “Torch Program” in the 1980s similarly aimed at commercializing domestic research and reducing foreign dependence 2.

What distinguishes the current push is its scale and focus. Goldman Sachs reports that China’s core AI industry has already reached approximately $75 billion in 2022, showing the substantial resources being committed to this vision 3.

The emphasis on RISC-V architecture is especially strategic as it leverages open-source technology that faces fewer export control restrictions, allowing China to potentially circumvent US semiconductor limitations while building domestic capabilities.

2️⃣ China’s regulatory approach creates a distinct AI development model

Unlike Western approaches to AI governance, China has developed a unique regulatory framework that prioritizes state-directed innovation and strategic alignment with national objectives.

While the EU emphasizes ethics and human rights in its AI Act and the US favors sectoral, market-driven innovation, China has created a model characterized by rapid adaptation and state coordination 4.