In Beijing, five-year plans have always served as a compass to guide the economy. But the one presented yesterday during the annual session of the National People’s Congress marks a particular inflection: artificial intelligence is now described as a structuring infrastructure called to irrigate the entire Chinese economy.
In this strategic document of more than one hundred pages, AI is associated with a set of industrial policies aimed at accelerating scientific breakthroughs, strengthening computing capacities and generalizing the use of automation in the productive system. For the Chinese authorities, it is less a question of supporting a technological field than of integrating artificial intelligence into the country’s industrial mechanics.
A response to economic and demographic constraints
This orientation is part of a more uncertain economic context than in previous decades. China must deal with several structural tensions: a demographic slowdown, a prolonged crisis in the real estate sector and a high level of debt of local authorities.
In his opening speech to the parliamentary session, Premier Li Qiang acknowledged the existence of an “acute” imbalance between strong industrial supply and more fragile domestic demand. The authorities also set a growth target of between 4.5% and 5% for 2026, slightly lower than the previous year.
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Faced with these constraints, Beijing seems to want to accelerate the transformation of its economic model. The objective is to gradually replace traditional drivers (real estate, infrastructure and exports) with growth driven more by technological innovation and advanced industry.
The concept of “new productive forces”, regularly mentioned by President Xi Jinping, also summarizes this orientation, namely strengthening productivity through the integration of advanced technologies throughout the economy.
AI as an industrial layer
From this perspective, artificial intelligence is not approached as a transversal technological layer. The five-year plan thus provides for expanded adoption of AI across all industrial chains, from product design to manufacturing operations.
The authorities are also talking about the creation of an integrated national data market, intended to facilitate the circulation and valorization of industrial data. The objective is to create a favorable environment for the development of large-scale artificial intelligence applications.
The strategy also includes the development of large-scale computing capabilities, through the construction of computer clusters and infrastructures intended for training advanced models. Beijing also wants to establish a security framework dedicated to AI, aimed at regulating uses and protecting certain applications deemed sensitive.
In industry, these directions should result in increased automation of factories and the progressive deployment of robots capable of taking on production or logistics tasks. The authorities explicitly mention the possibility of compensating, in part, for the contraction of the active population through the use of automated systems.
An extensive industrial strategy
Artificial intelligence is part of a broader set of technologies deemed priority. The five-year plan notably mentions biotechnology, quantum computing, atomic-scale manufacturing, brain-machine interfaces and even nuclear fusion.
These areas correspond to what the Chinese authorities consider to be the defining technologies of the coming decades. The objective is to strengthen national capacity for innovation in these sectors and reduce technological dependencies on foreign suppliers.
Semiconductors occupy a special place in this regard. US restrictions on the export of certain advanced technologies have led Beijing to accelerate its efforts to develop a domestic industry capable of covering a larger share of its needs.
In this logic, public companies should play a central role. The plan anticipates that several of them will help create demand for domestic technologies, particularly in the areas of semiconductors, drones or industrial equipment.
An assumed technological rivalry
The geopolitical dimension of this strategy appears implicitly throughout the document. Trade and technology tensions with the United States form a permanent background.
During the previous year, tariff escalation between Washington and Beijing had briefly led to customs duties exceeding 100% on certain categories of products. In this context, control of industrial supply chains has emerged as a strategic lever for the Chinese authorities.
China also intends to preserve its advantage in certain key segments, notably that of rare earths, where it controls a large part of the production and refining. These materials are essential for many technologies, whether batteries, electric motors or certain electronic equipment.
Between transformation and continuity
Despite these technological ambitions, the five-year plan also confirms certain continuities of the Chinese economic model. The country continues to invest a very high share of its gross domestic product in industrial investment and infrastructure, well above the global average.
At the same time, household consumption remains relatively low as a proportion of GDP. Authorities announced several modest measures to support domestic demand, including a limited increase in pensions and health insurance subsidies for rural populations.
However, these initiatives do not seem to constitute a major transformation of the economic model. Beijing continues to favor a strategy centered on production and technological investment.
A gradual transition
For many economists, the trajectory described by the five-year plan corresponds to an attempt at a gradual transition. Beijing is seeking to slow down certain activities deemed less productive, notably in real estate or certain industries with low added value, while directing capital towards technological sectors.
This transition, however, remains difficult to orchestrate. The reduction in industrial overcapacity could weigh on employment, while the real estate crisis continues to affect certain regions and local finances.
In this context, the orientation towards artificial intelligence and automation appears to be a strategic bet. It aims to maintain a high level of industrial productivity while preparing the Chinese economy for future technological transformations.
If this strategy is confirmed in the coming years, it could help to redefine China’s place in global technological competition. Artificial intelligence would then occupy a function that goes far beyond the framework of digital innovation, to be that of a central lever of economic power.
