As China Maps the Future, AI Keeps Popping Up Everywhere

Reading into China's 15th Five-Year Plan

China's 15th Five-Year Plan (2026-2030) will be adopted at the ongoing Two Sessions. The plan outlines how the nation will move to achieve basic modernization by 2035, amidst a more disquieting global environment as well as China's efforts to become more self-reliant in technology and improving living standards. This series provides insights into the nation's vision in various sectors.

Artificial intelligence has evolved far beyond a buzzword for "fancy technology." It's a central focus in China's 15th Five-Year Plan (2026-30) and a discussion point at the meetings of the National People's Congress and its advisory consultative body, which include corporate heavyweights.

AI's reach has moved beyond the tech community to become the central nervous system of China's future growth model. It permeates the economy, employment, investment, medicine and industrial competitiveness.

Last year, China's AI industry was valued at more than 1.2 trillion yuan (US$170 billion), supported by over 6,200 companies. Investment in research and development surpassed 3.9 trillion yuan. Notably, basic research investment as a percentage of total research spending edged past 7 percent for the first time, to 280 billion yuan. China ranked 10th in global innovation last year.

Li Licheng, minister of industry and information technology, told the legislative sessions that AI is the "key variable" driving high-quality economic development, and "AI + Manufacturing" is a mandatory goal, not an optional one.

The new five-year plan outlines the concept of "forging new forms of a smart economy," elevating AI within the national framework. Through its "AI Plus" initiative, the government aims to promote next-generation smart terminals and accelerate large-scale commercialization in key industries. That includes digital transformation for companies and the development of open-source AI ecosystems and intelligent computing clusters coordinated with the power grid.

Wang Jian, founder of Alibaba Cloud and a CPPCC member, said computing costs remain high, but they will inevitably plummet as the industry matures.

"The situation of current computing power is akin to the early days of washing machines and refrigerators," Wang remarked, adding that China's robust electricity supply gives it a strategic edge over the US, where investment in new power infrastructure has lagged.

Officials anticipate AI boosting productivity not just through powerful models, but via widespread application in manufacturing, urban governance and public services.

Yin Hejun, minister for science and technology, noted that during the new five-year plan prioritizes development and production of integrated circuits, AI and brain-computer interfaces. He highlighted milestones: humanoid robots capable of complex maneuvers, global leadership in open-source models and 76 innovative drugs approved in 2025. He pledged full support for advance scientific research and technology in next-generation AI products, with support for smart farm machinery and medical devices.

" AI is no longer merely a technological trend but a core variable reshaping hardware, software, services and cloud models," said China analyst Zhang Wenhui at International Data Corp.

China's information technology market investment reached US$688.9 billion in value in 2025, with a projected compound annual growth rate of 7.8 percent through 2029, IDC data show. Public cloud spending is the fastest-growing segment, expected to more than double by 2029.

The viral OpenClaw "Lobster" AI agent is the latest impetus to sector growth, boosting shares of Chinese tech companies like Tencent, MiniMax and UCloud.

Industry leaders are pivoting toward the AI-centric future.

Zeng Yuqun, chairman of Contemporary Amperex Technology (CATL) and a member of the consultative body, said his company will ramp up AI investment in new materials and smart manufacturing. CATL, the world's largest maker of batteries for electric cars and energy-storage systems, has invested over 80 billion yuan in research and development in the past two decades, with more than 21,000 employees engaged in research that has led to 50,000 patents.

The company's drive resulted in a 57 percent surge in fourth-quarter net profit to 23.2 billion yuan, and a 37 percent increase in revenue to 140.6 billion yuan. The company commands a dominant 30 percent share of the global market.

Zhou Yunjie, chairman and chief executive of appliance maker Haier Group, noted that AI is rapidly expanding into to embodied intelligence like humanoid robotics and proposed a national open innovation platform and dataset for the robots.

Zhou explained that embodied intelligence achieves deep integration between AI algorithms and robotic hardware systems, enabling machines to perceive their environment, comprehend tasks and execute complex operations.

Multinationals are equally committed to China's goals.

France-based Schneider Electric, which has been operating in China for 39 years, continues to expand its footprint, with one of its five global research and development centers in the nation. China is the company's second-largest global market.

Yin Zheng, Schneider Electric's executive vice president for China and East Asia, said the company is committed to application of digital intelligence across all its production.