- Xi Jinping touts artificial intelligence as a transformative force comparable to the early Internet era
- Beijing believes software-level gains with domestic deployment will overcome foreign restrictions
- China is focusing on artificial intelligence and semiconductors despite limited access to high-end accelerators
Chinese President Xi Jinping has emphasized the importance of developing artificial intelligence.
In his first formal meeting with ministers in 2026, Xi described AI as an “epoch-making technological transformation” comparable to quantum computing and biotechnology, comparing it to the industrial revolution and the early internet era.
Xi called on officials to break development bottlenecks that continue to slow down domestic technology, emphasizing a “whole nation” approach to supporting indigenous capabilities and maintaining global competitiveness.
DeepSeek and domestic breakthroughs
Over a year ago, Chinese AI firm DeepSeek released a large language model comparable to the leading AI tools in OpenAI and Meta, but requiring about eleven times less computational power, sparking global excitement and sending shockwaves through the Western world.
The achievement accelerated DeepSeek’s rise and bolstered Beijing’s belief in the strength of software-level gains.
The Chinese government believes that coordinated domestic implementation can produce results even under restrictive foreign trade policies.
It has now intensified policy focus on domestic artificial intelligence and semiconductor industries, indicating the need for coordinated growth despite limited access to advanced foreign accelerators.
Xi’s speech also warned against unrestrained or reckless spending by provincial governments, which should integrate artificial intelligence into existing sectors rather than replace current infrastructure.
This approach previously led to excess idle computing power in national data centers, but authorities have begun to sell excess capacity and tighten oversight of resource optimization.
Xi’s comments come as China prepares for its 15th Five-Year Plan, spanning 2026 to 2030, which will formalize the country’s approach to “new productive forces.”
AI is at the center of the strategy, both as a tool for industrial modernization and as a pressure point in competition with the United States.
Emphasizing caution, Xi advised that the use of AI tools should avoid uniform imposition and adapt to local conditions.
While Xi’s remarks signal a determination to maintain Chinese leadership in artificial intelligence, the cautious framing also reflects awareness of inefficiencies and overcapacity in existing infrastructure.
This suggests that Beijing’s approach may focus as much on resource management as on technological ambitions.
Via Tom’s hardware
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