China pursues AI self-reliance as US competition intensifies

China’s President Xi Jinping has outlined a strategy to accelerate China’s artificial intelligence development through national self-reliance, state media reported. This move comes as China aims to close the technological gap with the United States in AI, one of today’s most strategically important technologies. Xi’s focus on developing independent AI capabilities highlights the growing technological competition between the world’s two largest economies, particularly in the wake of U.S. sanctions aimed at slowing China’s progress.

The big picture: Xi emphasized the need for China to develop self-reliant AI capabilities through a “new whole national system” that would coordinate government resources to advance technological innovation.

• Speaking at a Politburo study session, Xi called for redoubled efforts to push forward technological innovation, industrial development, and AI applications across sectors.
• He specifically highlighted the need to strengthen basic research and master core technologies like high-end chips and basic software to build an “independent, controllable, and collaborative” AI ecosystem.

Key policy supports: The Chinese government will provide targeted assistance through procurement, intellectual property protection, research funding, and talent development programs.

• Xi outlined plans to accelerate AI regulations and laws while building risk warning and emergency response systems to ensure AI remains “safe, reliable, and controllable.”
• This focus on governance aligns with Xi’s previous statements that AI shouldn’t be a “game of rich countries and the wealthy” and should involve international cooperation.

Why this matters: China has recently made significant progress in narrowing the AI development gap with the United States, challenging assumptions about the effectiveness of U.S. sanctions.

• Chinese AI startup DeepSeek gained global attention in January when it launched an AI reasoning model reportedly developed with less advanced chips and at lower cost than Western competitors.
• China has also made notable advances in infrastructure software engineering, demonstrating resilience in its tech sector despite ongoing geopolitical tensions.

Between the lines: Xi’s emphasis on self-reliance signals China’s determination to overcome external constraints on its technological development, particularly in the face of U.S. export controls on advanced semiconductors.

• The directive to master “core technologies such as high-end chips” directly addresses one of China’s most significant vulnerabilities in the AI development race.
• By mobilizing national resources, China aims to build technological sovereignty in a field widely seen as critical to future economic and military power.