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Home Themes AI

Beijing Accelerates Push for AI and Tech Independence

by Team Lumida
March 5, 2025
in AI
Reading Time: 4 mins read
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Key Takeaways:

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  • China is prioritizing artificial intelligence (AI) as a cornerstone of its digital economy and tech independence strategy.
  • Beijing plans to develop open-source AI models and invest heavily in computing power and data infrastructure.
  • The U.S.-China tech rivalry intensifies as Washington restricts China’s access to advanced AI chips and models.
  • Chinese companies like DeepSeek and Alibaba are emerging as challengers to U.S. AI leaders such as OpenAI and Google.

What Happened?

China has made artificial intelligence a central focus of its national development strategy, with Premier Li Qiang emphasizing its importance in boosting the country’s digital economy. In a speech to lawmakers, Li pledged increased support for large-scale AI models and AI hardware, including smartphones, robots, and smart cars. Beijing also announced plans to develop a system of open-source AI models and continue investing in computing power and data infrastructure.

This push comes amid escalating tensions with the U.S., which has tightened restrictions on China’s access to advanced AI chips and technologies. Chinese companies like DeepSeek and Alibaba are stepping up efforts to compete with U.S. tech giants, while Beijing encourages the development of open-source architectures like RISC-V to reduce reliance on foreign-controlled technologies.


Why It Matters?

China’s intensified focus on AI reflects its broader ambition to achieve technological self-reliance and reduce dependence on U.S. technology. The AI sector has become a critical battleground in the U.S.-China tech rivalry, with implications for global supply chains, innovation, and market competition.

For investors, this signals significant opportunities in China’s AI and semiconductor industries, as the government’s backing could accelerate growth and innovation. However, geopolitical risks remain high, with U.S. export controls potentially limiting China’s access to cutting-edge technologies.


What’s Next?

China is expected to continue ramping up investments in AI infrastructure, including open-source models and chip design architectures like RISC-V. Investors should watch for further developments in Chinese AI companies, as they could emerge as global competitors in the sector.

Additionally, the U.S.-China tech rivalry will likely intensify, with potential implications for global markets and cross-border technology partnerships. Monitoring regulatory changes and advancements in AI hardware and software will be crucial for assessing future opportunities and risks.

Source
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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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