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Made in China 2025
EconomyChina Economy

China doubles down on AI – but calls for rational, not ‘blind’, growth

Beijing wants regions to shape AI to local needs, avoiding the fierce competition plaguing some sectors and weighing on the economy

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Humanoid robot AI technology in front of Chinese flag. Photo: Shutterstock
Mia Nurmamat
China’s central government has cautioned against a nationwide rush into artificial intelligence (AI) investment, urging careful planning while pledging stronger support to expand computing capacity and embed the technology across industries.

The country’s top economic planning agency said the roll-out of China’s “AI Plus” initiative – aimed at applying cutting-edge technology across the manufacturing and service sectors – should be tailored to local conditions, urging regions to build on their own geographic strengths, resources and industrial bases.

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“[We should] set priorities scientifically to foster complementary advantages and tangible results, while firmly avoiding disorderly competition and blind expansion,” the deputy head of the National Development and Reform Commission’s (NDRC) Department of Innovation and Hi-Tech Development, Zhang Kailin, told a news conference in Beijing on Friday.

The commission said it would continue to issue AI vouchers to subsidise companies’ access to computing power and help lower research and development costs, while also piloting new forms of consumer subsidies for AI-powered products to ensure broader public access.

The State Council, China’s cabinet, unveiled a blueprint for the AI Plus strategy earlier this week, setting targets for the adoption of AI-powered devices across various industries – aiming for over 70 per cent by 2027 and over 90 per cent by 2030.

The world’s second-largest economy is doubling down on innovation and technological advancement as it seeks to bolster its self-reliance as a tech powerhouse.

The AI industry is projected to become a significant driver of economic growth, adding over 11 trillion yuan (US$1.54 billion) to China’s gross domestic product by 2035 – about 4 to 5 per cent of total output – according to Rao Shaoyang, director at the China Telecom Research Institute.
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At Friday’s news conference, Zhang said the next one to two years would be a critical window for AI to be put into practice, adding the commission would soon release supporting policies to guide its use in daily life.

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