China is gearing up to unveil its strategy for transforming recent advancements in artificial intelligence (AI), robotics, and space technologies into significant industrial and financial market advancements. This move signals a new stage in the country’s technological competition with Western nations.
The leadership of China is set to deliver its annual government work report and budget plans at the start of the National People’s Congress (NPC) on Thursday. This will also include the outline for the 15th Five-Year Plan covering 2026 to 2030, which serves as a comprehensive framework defining priorities for industrial policy. The documents are anticipated to highlight the industries that will receive substantial funding and support.
For the first time last year, AI models were addressed in official communications, while the concept of embodied intelligence, which underlies humanoid robots, was also featured prominently.
This NPC gathering occurs shortly before a scheduled meeting between Chinese President Xi Jinping and U.S. President Donald Trump from March 31 to April 2, where issues regarding technology regulations and supply chains are expected to take center stage.
Moreover, it signifies a year since Chinese AI developers gained international recognition for their rapid advancements, despite stringent U.S. restrictions on access to state-of-the-art chips and manufacturing equipment. DeepSeek, a Chinese startup whose viral AI model launch caused a global tech market downturn last year, is anticipated to unveil a new generation model shortly.
“The initial shock is over,” remarked Alfredo Montufar-Helu, the managing director at Ankura Consulting in Beijing. “There is now an expectation regarding what China will develop next.”
Policymakers are tasked with the challenge of translating individual technological breakthroughs into systematic advancements across sectors such as manufacturing, logistics, and energy. Shujing He, a senior analyst at Plenum China, mentioned that authorities will likely promote “AI-plus manufacturing” by involving significant state-owned enterprises as lead adopters, thereby drawing in startups and specialized suppliers for practical applications.
The strategy could significantly alter China’s industrial framework. Shin Nakamura, the president of Daiwa Steel Tube Industries, a Japanese manufacturer, noted that the AI initiative is likely to favor large capital- intensive industries, while smaller enterprises may encounter structural difficulties. “This could increase the disparity between large companies and SMEs in China, accelerating consolidation,” he stated.
The upcoming five-year plan is expected to put a strong focus on embodied intelligence. Recently, China demonstrated humanoid robots performing dance and martial arts routines during the CCTV Spring Festival Gala, the nation’s most-watched television show.
“Advances in mechatronics, especially in balance, motor control, and dynamic locomotion, have significantly improved over the past year,” said Mike Nielsen, an executive at RealSense, a computer vision company collaborating with the Chinese robotics firm Unitree. “China has gained notable momentum, with early-stage platforms now showcasing remarkable agility and stability.”
However, regulators have indicated concerns about the lack of differentiation among over 150 domestic humanoid robot manufacturers, implying that consolidation might be quicker than in earlier strategic industries such as electric vehicles.
The field of space technology also presents a challenge for Beijing as it seeks to convert research into industrial capabilities. Private launch company LandSpace is planning another recovery test this year for its reusable Zhuque-3 rocket, building on its success in December as the first Chinese enterprise to trial an orbital-class reusable launcher.
Despite these advancements, emerging industries alone may not suffice to generate the necessary investment for maintaining a 5% GDP growth, according to the U.S.-based Rhodium Group. Analysts anticipate that Beijing will continue to depend on exports while prioritizing sectors with more immediate commercial viability, including autonomous vehicles.
The upcoming five-year plan will further detail how China plans to maintain the industrial fundamentals that support its technological ambitions, as supply chains increasingly become tools of geopolitical influence. Over the past year, China has intensified export restrictions on rare earth minerals and lower-end semiconductors, affecting global supply chains.
Doug Friedman, CEO of the U.S. biomanufacturing institute BioMADE, indicated that other vital sectors, including industrial chemicals, are also vulnerable. “At this moment, we’re essentially on par,” he noted regarding the U.S. and China. “Whoever invests more aggressively over the next three to five years will gain a substantial advantage.”
Neither China’s State Council nor its industry ministry has responded to requests for comments.
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