- Xi Jinping emphasizes AI as a transformative force comparable to the early Internet era
- Beijing believes software-level gains with domestic deployment will overcome foreign restrictions
- China focuses on AI and semiconductors despite limited high-end accelerator access
Chinese President Xi Jinping has stressed the importance of developing artificial intelligence.
At his first formal meeting with ministers of 2026, Xi described AI as an “epoch-making technological transformation,” comparable to quantum computing and biotechnology, and likened it to the industrial revolution and the early Internet era.
Xi urged officials to break development bottlenecks that continue to slow domestic technology, stressing a “whole-of-nation” approach to support indigenous capabilities and maintain global competitiveness.
DeepSeek and domestic breakthroughs
Over a year ago, Chinese AI company DeepSeek released a large language model comparable to the leading AI tools of OpenAI and Meta, but requiring roughly eleven times less computational power, sparking global excitement and sending shockwaves through the Western world.
The achievement accelerated DeepSeek’s rise and strengthened Beijing’s belief in the power of software-level gains.
The Chinese government believes coordinated domestic deployment can produce results even under restrictive foreign trade policies.
It has now reinforced policy focus on domestic AI and semiconductor industries, stating the need for coordinated growth despite limited access to high-end foreign accelerators.
Xi’s speech also warned against unrestrained or reckless spending by provincial governments, which should integrate AI 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 selling surplus capacity and tightening 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 sits at the center of the strategy, both as a tool for industrial modernization and as a point of pressure in competition with the United States.
Xi stressed caution, advising that adoption of AI tools should avoid uniform imposition and align with local conditions.
Although Xi’s remarks signal determination to maintain Chinese leadership in AI, the cautious framing also reflects awareness of inefficiencies and overcapacity in existing infrastructure.
This suggests Beijing’s approach may focus as much on managing resources as on technological ambition.
Via Tom's Hardware
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