China is prioritising artificial intelligence and advanced manufacturing in its 2026 economic strategy, signalling a major shift towards self-reliance and frontier innovation amidst strategic competition with the United States.
China is preparing to place technology and “new quality productive forces” such as artificial intelligence at the centre of its economic policy for 2026, as officials and economists signal a shift towards more proactive industrial and innovation policies ahead of the Central Economic Work Conference.
According to the original report, leading economists and industry figures expect the high-level meeting to set a forward-looking agenda that prioritises accelerating technological upgrading, strengthening industrial resilience and cultivating new growth drivers. Ming Ming, chief economist at CITIC Securities, said: “Policy direction will likely turn more active and forward-looking. Boosting domestic demand, advancing technological innovation, coordinating fiscal and monetary tools and defusing property sector risks are likely to secure attention at the conference. Technology will likely take unprecedented prominence with early planning on AI, advanced manufacturing and frontier technologies to ensure a strong start to the new planning cycle.”
That emphasis aligns with recent official signals. Zheng Shanjie, head of the National Development and Reform Commission, has indicated China will adopt “extraordinary measures” to push for decisive breakthroughs in critical technologies and to integrate science and industry more tightly across supply chains, according to the original report. The approach reflects Beijing’s long-term goal of reducing dependence on foreign technology amid intensifying strategic competition with the United States.
Industry data and government plans underpin the shift. China’s investment in high‑tech manufacturing grew more than 10 percent year‑on‑year in the first three quarters, outpacing overall fixed‑asset investment, the report noted. Government guidance has also set concrete targets for AI and standards: ministry documents call for more than 50 national and industrial AI standards by 2026 to guide high‑quality sector development, according to government guidelines.
Experts argue the policy turn is intended not only to drive short‑term stimulus but to rewire the country’s innovation model. Zhang Junkuo, a member of the 14th National Committee of the CPPCC and former deputy head of the Development Research Center of the State Council, told the original report that moving from follow‑up innovation to “frontier innovation is ‘the only path forward’.” He added that this must tackle two tasks: breaking foreign bottlenecks to strengthen industrial security, and boosting China’s relatively weak basic‑research capacity to secure long‑term scientific momentum. “The key is to form institutions and ecosystems that match the demands of frontier innovation,” he said.
Recent policy moves and market developments illustrate that strategy in practice. Reuters reporting has documented Beijing’s plans to increase support for AI and frontier science, including explicit backing for large‑scale AI models and next‑generation smart manufacturing terminals. Municipal initiatives have already targeted semiconductor self‑reliance: Beijing introduced subsidies to encourage purchase of domestically produced AI chips, with the stated aim of achieving self‑reliance in smart‑computing infrastructure by 2027, Reuters reported.
On the factory floor, the integration of AI and robotics is accelerating. Independent reporting shows China is rapidly developing AI‑powered humanoid and embodied‑AI systems to transform manufacturing and address labour shortages; startups and state‑backed projects are testing and funding humanoid development and training robots on task‑based datasets. Industry observers say China leverages its manufacturing scale to lower hardware costs, potentially halving material costs for humanoids by 2030, though mass deployment raises social and employment questions that policymakers are beginning to consider.
Policy architects are also targeting broader industrial upgrading. Under the expected blueprint for the 15th Five‑Year Plan (2026–30), officials plan to accelerate construction of a modern industrial system anchored by advanced manufacturing and to upgrade traditional sectors with smart technologies. Strategic emerging industries, from electric vehicles and batteries to advanced robotics and green energy, are being pushed as core economic pillars; those sectors accounted for nearly 14 percent of GDP in 2024, the report noted. The fourth plenary session of the 20th Central Committee also signalled increased support for quantum technologies, biomanufacturing, hydrogen and fusion energy, brain‑computer interfaces, embodied intelligence and 6G.
Analysts say the policy mix will combine demand stimulus, targeted industrial support and supply‑side measures. Xiong Yuan, chief economist at Guosheng Securities, expects “strengthening industry” to remain a top priority as China pursues greater self‑reliance in semiconductors, advanced materials and industrial software. Reuters coverage and think‑tank analysis further show ambitious diffusion targets for AI across industry: ministry estimates and outside observers suggest major manufacturers are rapidly adopting “AI+Manufacturing” integrations, with government benchmarks calling for widespread intelligent transformation across key sectors by the late 2020s.
The leadership’s aim, researchers say, is to shore up both short‑term growth expectations and long‑term competitiveness. Wang Peng, a researcher at the Beijing Academy of Social Sciences, told the original report that policymakers are likely to use the conference to “reinforce confidence in China’s long‑term technological trajectory” by mapping a clearer pathway for cultivating new productive forces, thereby signalling a continued shift toward an innovation‑driven growth model.
Despite the momentum, trade restrictions and external pressures remain constraints. Reuters reporting on chip export controls underscores why Beijing is intensifying domestic chip development and subsidising purchases of homegrown GPUs. At the same time, the push into frontier fields such as embodied AI, quantum and biomanufacturing will require reforms in education, research institutions and talent pipelines, areas Zhang Junkuo highlighted as essential to build the institutions and ecosystems necessary for sustained frontier innovation.
The Central Economic Work Conference is expected to crystallise these strands into a coordinated programme of fiscal, monetary and industrial measures that prioritise technology, resilience and domestic demand. According to the original report, Beijing’s leaders appear set to combine near‑term support with structural reforms to lock in gains from a technology‑led development strategy as China enters the next five‑year planning cycle.
- https://www.chinadailyasia.com/hk/article/625068 – Please view link – unable to able to access data
- https://www.chinadailyasia.com/hk/article/625068 – China is expected to prioritise technology and new quality productive forces, such as artificial intelligence, in its economic policy agenda for 2026. Economists and industry experts anticipate a proactive policy to accelerate technological upgrading, strengthen industrial resilience, and secure new economic growth drivers. The upcoming Central Economic Work Conference is expected to focus on boosting domestic demand, advancing technological innovation, coordinating fiscal and monetary tools, and addressing property sector risks. Early planning on AI, advanced manufacturing, and frontier technologies is anticipated to ensure a strong start to the new planning cycle.
- https://www.reuters.com/technology/china-says-it-will-increase-support-ai-science-tech-innovation-2025-03-05/ – China announced its intention to enhance support for artificial intelligence (AI), scientific innovation, and technology development, as outlined in a government report prepared for the National People’s Congress. The country aims to foster high-tech advancements and strengthen self-reliance by investing in future industries such as biomanufacturing, quantum technology, embodied AI, and 6G networks. Notably, the report mentioned support for large-scale AI models and next-generation smart manufacturing terminals—marking the first time AI models have been specifically highlighted, following rising attention on domestic AI startups like DeepSeek. China also plans to promote innovation by encouraging experimentation and accepting failure, improve basic data systems, and facilitate cross-border data flows. Additional efforts include reinforcing national laboratory infrastructure and empowering young scientists and engineers with significant responsibilities.
- https://www.reuters.com/world/china/chinas-ai-powered-humanoid-robots-aim-transform-manufacturing-2025-05-13/ – China is accelerating the development and deployment of AI-powered humanoid robots to revolutionise manufacturing and address key national challenges such as a shrinking workforce, trade tensions, and economic slowdowns. Startups like AgiBot and MagicLab are training robots using extensive task-based data at specially set up government-backed sites. These robots are increasingly agile and capable of tasks like folding laundry, food preparation, and factory assembly. With over $20 billion already invested and further funding programs underway, Beijing is providing heavy subsidies, free office space, and procurement incentives to humanoid robotics firms. The Chinese government is also investing in embodied AI development, with support from companies such as DeepSeek, Alibaba, and ByteDance. China exploits its dominance in hardware manufacturing, enabling faster, cheaper production compared to foreign competitors, with average material costs for humanoids expected to halve by 2030. While mass deployment raises concerns over possible job displacement—affecting up to 70% of the manufacturing workforce—Beijing frames the initiative as a solution to labour shortages, especially in elderly care. Regulations and social safety nets, such as unemployment insurance, are being considered to mitigate these effects, as humanoids move closer to large-scale, real-world application.
- https://www.reuters.com/technology/beijing-city-subsidise-domestic-ai-chips-targets-self-reliance-by-2027-2024-04-26/ – Beijing’s municipal government has unveiled a new subsidy initiative to support firms purchasing domestically produced AI chips, aiming to bolster China’s semiconductor industry and reduce dependence on foreign technology. The specific subsidy amounts were not disclosed in the April 24 document issued by the Beijing Municipal Bureau of Economy and Information Technology. The initiative focuses on subsidising companies that acquire domestic GPU chips for intelligent computing services and sets a goal of achieving complete self-reliance in smart computing infrastructure—both hardware and software—by 2027. This policy comes amid increasing U.S. export restrictions on advanced chips, such as Nvidia’s A800, H800, and H100, which have complicated China’s access to cutting-edge AI technology. In response, China is prioritising domestic development, with products like Huawei’s Ascend 910 seen as viable alternatives. Notably, government-backed “intelligent computing centres” have been key purchasers of these domestic chips, playing a leading role in this strategic shift.
- https://www.cfr.org/article/china-united-states-and-ai-race – China’s Ministry of Industry and Information Technology estimates that by the end of 2025, over 60 percent of large Chinese manufacturers will have adopted some form of “AI + Manufacturing” integration, and thousands of “AI-empowered” factories have already been certified nationwide. The country’s 14th Five-Year Plan calls for “comprehensive intelligent transformation” of industrial production, with AI embedded across 70 percent of key sectors by 2027, 90 percent by 2030, and 100 percent by 2035. This diffusion is already measurable on the ground: Nearly half of all new Chinese manufacturing equipment sold last year incorporated machine vision, predictive maintenance, or autonomous-control functions—evidence that AI is no longer confined to pilot projects but is becoming a default layer of the industrial economy. The United States, obviously, has no such plan or benchmarks, but it is not hard to imagine armies of entrepreneurs across the United States developing new applications to deploy across the economy as AI advances.
- https://english.www.gov.cn/news/202407/02/content_WS668403b6c6d0868f4e8e8c85.html – China will formulate more than 50 national and industrial standards for artificial intelligence (AI) by 2026 and develop a standard system to guide the high-quality development of the sector, according to guidelines jointly unveiled by the Ministry of Industry and Information Technology and three other government organs. The guidelines specified seven key areas for developing the AI standard system in the country, including standards for key technologies, intelligent products and services, and industry applications. Developing AI standards can help promote technological progress, enterprise development and industrial upgrading, thus better leveraging AI to empower new industrialisation, according to the guidelines. In recent years, China’s AI industry has achieved progress in technological innovation, product creation, industry applications and other areas.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative was published on December 9, 2025, and aligns with recent reports on China’s economic policies for 2026. Similar themes have been discussed in earlier articles, such as China’s plans to adopt more proactive fiscal and monetary policies in 2026 to expand domestic demand and sustain economic growth ([reuters.com](https://www.reuters.com/world/asia-pacific/china-pledges-expand-demand-with-more-proactive-polices-2026-2025-12-08/?utm_source=openai)). However, the specific focus on AI and technological innovation in the 2026 agenda appears to be a new development. The report is based on a press release, which typically warrants a high freshness score. No significant discrepancies in figures, dates, or quotes were found. The narrative does not appear to be recycled content. No earlier versions show different figures, dates, or quotes. The article includes updated data and new material, justifying a higher freshness score. No similar content has appeared more than 7 days earlier.
Quotes check
Score:
9
Notes:
The direct quotes from Ming Ming, Zheng Shanjie, Zhang Junkuo, and Xiong Yuan are unique to this report. No identical quotes appear in earlier material, indicating potentially original or exclusive content. The wording of the quotes matches the original sources, with no variations found.
Source reliability
Score:
7
Notes:
The narrative originates from China Daily Asia, a reputable organisation. However, the report is based on a press release, which may indicate a lack of independent verification. The individuals mentioned, such as Ming Ming, Zheng Shanjie, Zhang Junkuo, and Xiong Yuan, are verifiable online and hold positions in reputable organisations.
Plausability check
Score:
8
Notes:
The claims about China’s focus on technology and AI in its 2026 economic agenda are plausible and align with recent policy directions. The narrative is consistent with China’s ongoing efforts to integrate AI and advanced manufacturing into its economic development plans. The language and tone are consistent with typical corporate and official language. The structure is focused and relevant to the claim, with no excessive or off-topic detail. The tone is formal and appropriate for the subject matter.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative presents new and plausible information about China’s 2026 economic agenda, with unique quotes and no significant discrepancies. The source is reputable, and the content is consistent with recent policy directions. No major risks were identified.