The Chinese government is not only keeping a keen eye on the country’s AI progress, but is also setting the direction for researchers and companies in the sector.
In a recent group study session of the Political Bureau of the Communist Party of China (CPC) Central Committee, President Xi Jinping underscored the critical importance of advancing China’s artificial intelligence (AI) sector to secure a global competitive edge. Xi emphasized the need for breakthroughs in foundational AI research and urged researchers to position China as a first mover in the rapidly evolving field. His remarks signal a national commitment to leveraging AI as a cornerstone of technological and industrial transformation.
Xi highlighted AI’s transformative potential, noting that it “has profoundly changed the way humans produce and live” and serves as “a strategic technology leading the new round of technological revolution and industrial transformation.” He acknowledged the CPC Central Committee’s efforts in recent years to bolster AI development through enhanced top-level design and implementation, which have driven “holistic and systematic advancement of the country’s comprehensive AI strength.” However, he also pointed out gaps in fundamental theories and key core technologies, urging researchers to address these deficiencies to “firmly grasp the initiative in both AI development and governance.”
To achieve a first-mover advantage, Xi called for intensified efforts in basic research and overcoming challenges in core technologies, such as high-end chips and foundational software. “Breakthroughs must be achieved in fundamental theories, methodologies and tools to gain a first-mover advantage and secure a competitive edge in AI,” he said. He also advocated for building “an independent, controllable, and collaboratively-functioning foundational software and hardware system for AI” to reduce reliance on foreign technologies.
China’s recent advancements in AI underscore its ambition to lead the global race. The breakout company has been DeepSeek, which stunned the world when it launched DeepSeek R1 which was comparable in performance to many OpenAI and Google models at the time, and was available at a fraction of their cost. DeepSeek was also open-source unlike top US models, which made it extremely popular among the developer community.
But DeepSeek isn’t the only Chinese AI company that’s made significant breakthroughs. There are at least 10 extremely capable Chinese AI models that are out there from companies including Alibaba and Tencent. Chinese models, in particular, have proven themselves to be extremely capable at video generation. But apart from AI models, China is also using AI in fields like robotics and self-driving cars with some impressive results.
These developments align with Xi’s vision of leveraging China’s “rich data resources, a complete industrial system, a wide range of application scenarios and huge market space” to drive innovation. Xi emphasized the role of AI in transforming traditional industries and fostering emerging sectors. “An industry-academia-research-application collaborative innovation system led by enterprises should be built to promote the in-depth integration of AI technological innovation and industrial innovation,” he said. He also called for coordinated development of computing power infrastructure and deeper utilization of data resources, alongside policy support in areas like intellectual property rights, fiscal incentives, and government procurement.
Beyond technological advancements, Xi stressed the importance of governance and ethical considerations. “AI not only introduces unprecedented development opportunities, but also brings unprecedented risks and challenges,” he noted, advocating for accelerated formulation of laws, regulations, and ethical guidelines to ensure AI remains “safe, reliable and controllable.” He also emphasized global cooperation, particularly with Global South countries, to bridge the AI divide and establish a governance framework with “extensive consensus.”
Xi’s remarks come at a time when China is intensifying its AI efforts amid global competition. The country’s investments in AI research, infrastructure, and talent development—coupled with its vast data resources—position it as a formidable player. US AI companies have been repeatedly stressing how democratic countries need to be at the forefront of AI, but with China seemingly recognizing AI as a national priority with the president himself publicly exhorting researchers to make breakthroughs, the AI race might end up being a lot closer than most people expect.