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China will outline its next phase in the technology race with the West, converting recent breakthroughs in artificial intelligence, space, and robotics into industrial scale and capital market momentum. The country's leadership will publish its annual government work report and budget plans.

These details will be presented at the opening session of the National People's Congress (NPC), China's parliament. The 15th Five-Year Plan for 2026–2030, a comprehensive blueprint for industrial policy, will also be released.
The reports clarify Beijing's priorities and indicate which industries will receive generous funding and policy support. Last year, artificial intelligence models received a mention for the first time, while embodied intelligence, the technology powering humanoid robots, was also highlighted.
The NPC takes place weeks before a planned meeting between Chinese President Xi Jinping and U.S. President Donald Trump from March 31 to April 2. Technology controls and supply chains are expected to be key discussion points during their talks.
The NPC also marks a year since Chinese AI developers attracted global attention for significant capability advancements. These leaps occurred despite tight U.S. restrictions on access to advanced chips and chipmaking equipment.
DeepSeek, the Chinese startup whose viral AI model release last year triggered a global tech share selloff and reshaped assumptions for China's technology competitiveness against the U.S., is widely expected to roll out a next-generation model in the coming days. Alfredo Montufar-Helu, a managing director at Ankura Consulting in Beijing, stated, "The shock is over."
Montufar-Helu added, "Now there is an expectation of what China can come up with next." The core challenge for Beijing is transforming individual breakthroughs into systematic, large-scale gains across manufacturing, logistics, and energy sectors.
Shujing He, a senior analyst at advisory firm Plenum China, suggested policymakers will likely push "AI-plus manufacturing." This strategy involves using large state-owned enterprises as anchor adopters, drawing startups and specialised suppliers into real-world deployment.
However, this strategy is also anticipated to reshape China's industrial structure. Shin Nakamura, president of Japanese manufacturer Daiwa Steel Tube Industries, observed that China's AI push may favour large, capital-intensive producers.
Nakamura said these larger organisations are better positioned to absorb deployment costs, while smaller firms face structural constraints. "The gap between large enterprises and SMEs in China will widen, and consolidation will accelerate," Nakamura added.
The five-year blueprint is also expected to reinforce embodied intelligence. China showcased advancements it had made in this area last month by putting Chinese-made humanoid robots performing dancing and martial arts centre stage on China's most-watched TV show, the annual CCTV Spring Festival gala.
Significant leaps in hardware technology underpin China's confidence in robotics. Mike Nielsen, an executive at computer vision firm RealSense, which has collaborated with leading Chinese robotics organisation Unitree, stated, "Mechatronics — especially balance, motor control, and dynamic locomotion — has improved dramatically."
Nielsen noted, "China has shown major momentum, with early-stage platforms now demonstrating much higher agility and stability." Despite these advancements, Chinese regulators are cautioning about low differentiation among more than 150 domestic humanoid robot developers.
Analysts predict consolidation is likely to occur more quickly than in earlier strategic sectors, such as electric vehicles. Space represents another test case for Beijing's drive to convert research into industrial strength.
Private launch firm LandSpace said it plans another recovery attempt this year for its reusable Zhuque-3 rocket. The organisation became the first Chinese company to conduct a full test of an orbital-class reusable launcher in December.
Despite the excitement, China's emerging industries are not projected to generate sufficient investment to power 5% GDP growth in the coming years. U.S. research firm Rhodium Group indicated that Beijing will continue relying on exports to support its economy.
This also implies Beijing will prioritise sectors with more immediate commercial impact, such as autonomous driving, according to Plenum's He. The five-year plan will also be scrutinised for how Beijing intends to protect the industrial foundations supporting its technology push.
Supply chains themselves are becoming instruments of geopolitical pressure. China has expanded its use of export controls into rare earths and low-end semiconductors, disrupting global supply chains and underscoring Beijing's economic leverage.
Doug Friedman, CEO of U.S. biomanufacturing institute BioMADE, stated, "What we see happening with rare earths is also happening in the industrial chemicals industry." Friedman highlighted that as Beijing lays out its next five-year industrial strategy, the stakes are becoming clearer.
Friedman said, "Right now, we're neck and neck," referring to the U.S. and China. He believes, "Whoever doubles down over the next three to five years is going to gain a real lead."
China's parliament will unveil a new five-year plan detailing technology ambitions in AI, robotics, and space.
The plan aims to transform technology breakthroughs into large-scale industrial gains and capital market momentum.
Policymakers are expected to push "AI-plus manufacturing," potentially reshaping China's industrial structure and favouring large enterprises.
Source: REUTERS


