- Xi Jinping highlights AI as transformative force comparable to early Internet era
- Beijing believes software gains from domestic deployment will overcome foreign restrictions
- China focuses on AI and semiconductors despite limited access to high-end accelerators
Chinese President Xi Jinping has stressed the importance of developing artificial intelligence.
In his first formal meeting with 2026 ministers, Xi described AI as a “historic technological transformation,” comparable to quantum computing and biotechnology, and likened it to the Industrial Revolution and the beginnings of the Internet era.
Xi urged officials to remove development bottlenecks that continue to slow domestic technology, emphasizing a “national” approach to supporting local capabilities and maintaining global competitiveness.
DeepSeek and national breakthroughs
More than a year ago, Chinese AI company DeepSeek released a large language model comparable to leading AI tools from OpenAI and Meta, but requiring approximately eleven times less computing power, sparking global excitement and sending shockwaves across the Western world.
This success accelerated the rise of DeepSeek and reinforced Beijing’s confidence in the power of software-level gains.
The Chinese government believes that a coordinated national deployment can produce results even under restrictive foreign trade policies.
He has now increased the policy focus on domestic AI and semiconductor industries, asserting the need for coordinated growth despite limited access to high-end foreign accelerators.
Xi’s speech also warned against rampant or reckless spending by provincial governments, which should integrate AI into existing sectors rather than replacing current infrastructure.
This approach previously led to excessive and unused computing power in national data centers, but authorities have started selling excess capacity and increasing oversight of resource optimization.
Xi’s comments come as China prepares for its 15th five-year plan, running from 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 point of pressure in the face of competition from the United States.
Xi stressed caution, advising that adoption of AI tools should avoid uniform taxation and align with local conditions.
While Xi’s remarks demonstrate China’s determination to maintain its leadership in AI, their cautious wording also reflects an awareness of the inefficiencies and overcapacity of existing infrastructure.
This suggests that Beijing’s approach may focus as much on resource management as technological ambition.
Via Tom’s material
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