China's New 5-Year Plan Mandates AI Across Economy
China's latest five-year plan calls for the integration of AI throughout its entire economy, setting explicit goals for technological self-reliance. The national strategy signals a massive, state-directed investment in AI R&D. This could accelerate the emergence of advanced, cost-competitive Chinese AI platforms and models on the global market.
The 15th Five-Year Plan (2026-2030) features a sweeping "AI+ action plan" that mentions artificial intelligence over 50 times, embedding it into all sectors of the economy. A key objective is to expand the digital economy's share of GDP to 12.5% by 2030, building on a core AI industry valued at over 1.2 trillion yuan (about $173.9 billion) in 2025. This national strategy is the latest evolution of long-term planning, including the "Made in China 2025" initiative and the 2017 "New Generation Artificial Intelligence Development Plan." Both previous plans set the goal for China to become a global AI leader by 2030, prioritizing self-sufficiency and reducing reliance on foreign technology. The plan is backed by substantial state investment, with total AI capital expenditure forecast to reach up to CNY700 billion (nearly $100 billion) in 2025 alone. This is part of a broader commitment to invest $565 billion in annual R&D through 2030, with a significant focus on building out a national network of computing infrastructure and AI-focused data centers. A key element of the strategy is the focus on "embodied AI" — integrating artificial intelligence directly into advanced manufacturing and industrial robotics. This emphasis on practical application in the physical economy, termed "new quality productive forces" by Premier Li Qiang, contrasts with the US focus on large language models and the pursuit of artificial general intelligence. China's top tech firms, including Baidu, Alibaba, and Tencent, have been designated as "AI champions" to lead development in specialized sectors. Meanwhile, newer companies like DeepSeek, Moonshot AI, and MiniMax are gaining global recognition for their cost-effective and energy-efficient open-source models. Data from the OpenRouter platform showed that API calls to Chinese large language models began to surpass US models in February 2026. Models from MiniMax, Moonshot, and DeepSeek are among the top five most used globally, a trend driven by their high cost-performance. The plan also outlines ambitions to play a larger role in setting global AI standards for governance. This involves establishing international cooperation platforms and technology centers under the Belt and Road Initiative, positioning China as a leader for the Global South.
