Chinese President Xi Jinping has called for self-sufficiency in AI development as China competes with the US in this critical technological area.

During a Politburo study session, Xi emphasized the need for China to innovate in AI using its “new whole national system.”

He addressed gaps in AI development and proposed policy measures related to government procurement, intellectual property rights, and talent development.

Xi highlighted the importance of mastering key technologies, such as advanced chips and essential software, to create a self-reliant AI infrastructure.

He also urged for quicker regulations and laws to ensure AI safety, including a risk-warning and emergency response system.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s AI ambition follows a deliberate long-term roadmap, not just a reaction

Xi’s recent emphasis on self-reliance continues a carefully orchestrated national AI strategy dating back to the 2017 “New Generation Artificial Intelligence Development Plan,” which laid out specific financial and technological milestones through 20301.

This plan outlined a three-stage approach: achieving technological parity with global leaders by 2020, making major breakthroughs by 2025, and establishing dominance by 2030, with targets of a 150 billion RMB industry by 2020, 400 billion by 2025, and over 1 trillion by 20301.

Despite Xi’s urgent rhetoric amid rising tensions, China has been methodically building AI capabilities through provincial initiatives, with local governments like Shanghai and Beijing implementing specialized AI development zones and investment funds2.

China’s investment approach showcases this long-term thinking, with government guidance funds having allocated over $1 billion to domestic startups, while the private sector has dramatically increased AI investments from $650 million in 2023 to $3.15 billion in 20243.

The latest Politburo statements reflect an evolution of this strategy rather than a new direction, as China assesses its progress against these benchmarks while acknowledging persistent gaps in foundational technologies.

2️⃣ China employs a dual-track approach: practical applications now, core capabilities later

China’s AI strategy deliberately balances immediate implementation of AI applications in existing industries with longer-term development of core technological capabilities that currently rely on foreign technology4.

This approach is evident in Xi’s latest comments where he simultaneously emphasized “AI-empowered applications” while acknowledging gaps in “core technologies such as high-end chips and basic software”5.