China will promote the integrated and clustered development of strategic emerging industries. This is part of its efforts to foster emerging and future industries. The plan was outlined in the government work report submitted on March 5th to the national legislature.
The report stated that China will launch demonstration projects for the large-scale use of new technologies, products, and scenarios. It will also encourage the safe and sound development of industries like commercial space, the low-altitude economy, and others.
Additionally, China will create a mechanism to increase funding for future industries. It will focus on sectors like biomanufacturing, quantum technology, embodied artificial intelligence, and 6G technology.
China’s AI Surge
AI is now seen as a key driver of China’s future growth.
China’s robotics technology has advanced significantly. The gap between domestic development and international standards is narrowing. Qiao, a robotics expert from the Chinese Academy of Sciences, discussed this on March 4th.
China’s large AI models faced challenges in computing power and data. However, innovators like DeepSeek have made significant breakthroughs. They’ve advanced AI reasoning through reinforcement learning. This has opened a new direction for AI development. By embracing open-source approaches, they’ve broken technological barriers. This has accelerated the commercialization of large models. Chinese companies are now closing the gap with US giants like OpenAI. This progress shows China’s potential to lead in global technology.
AI applications like DeepSeek-R1 and Nano AI Search are now widely adopted. Smart technology is becoming accessible to more people. Local governments and businesses, including small and medium-sized enterprises, are using large models. This is helping accelerate industrial growth and digital transformation.
The global race for large models is at a critical stage. China can use large models to drive a new industrial revolution. 2025 could be the year AI takes off. Success will depend on seizing opportunities like DeepSeek. Combining local strengths with diverse application scenarios will keep China ahead in the global AI competition.
Boost Investment in Tech Innovation
China will allocate a larger portion of its science and technology budget to basic research, according to the government work report.
This year, China will launch a science and technology board in the bond market. Pan Gongsheng, governor of China’s central bank, announced this plan to strengthen financial support for technological innovation.
At a news conference during the “two sessions”, Pan explained that the initiative will help financial institutions, tech companies, and private equity funds issue specialized bonds for supporting technological innovation.
Additionally, China’s central bank will adjust its central bank lending program for technological innovation and transformation. The program size will increase from 500 billion yuan to between 800 billion and 1 trillion yuan.
AI Promotion Law to Foster Innovation
What’s more, Li Jinghong, a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and a professor at Tsinghua University, plans to propose an AI Promotion Law. This law aims to create a better environment for innovative development.
Li pointed out that society still has significant gaps in understanding AI. Issues like public concerns over self-driving taxis, the impact of AI on traditional jobs, and the illegal use of AI hinder technological progress and industry growth.
Li will suggest that the AI Promotion Law focus on promoting effective application, inclusive services, technological innovation, talent cultivation, employment protection, and international cooperation. The law should address issues such as the lack of understanding about AI, delayed coordination of laws and regulations, insufficient high-quality data protection, and the safeguarding of copyright and intellectual property.
Push for Talent Development
Premier Li Qiang highlighted the need for a highly skilled workforce at the opening meeting of the NPC, China’s top legislature. He pledged to develop experts in strategically important fields and to train top-tier innovators and personnel in key areas.
To strengthen the integration of education, science, and industry, China is expanding its Outstanding Engineer Education and Training program. Huai Jinpeng, the Minister of Education, stated that 40 national-level academies have been established. Over 2,000 chief engineers and 10,000 enterprise engineers are collaborating with universities to co-develop curricula and mentor students.
China is accelerating the development of fundamental disciplines and emerging fields such as artificial intelligence, biotechnology, new energy, and new materials. Huai Jinpeng emphasized the importance of cultivating top talent in areas like mathematics and computer science, which are vital to technological innovation.
The Ministry of Education plans to establish demonstration zones for industry-education integration, utilizing the strengths of leading universities and research institutions, Huai added.
Huai also acknowledged that vocational education has made a significant contribution to the development of China’s modern manufacturing sector.
Written by Yi Shen, picture designed by Qing Dai, additional reporting from Xinhua, Global Times, CNS, and China Daily.
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