Chinese Leader Calls for Focus on AI and Emerging Technologies

Chinese leader Xi Jinping told ruling party elites that failure to master emerging technologies risks ceding ground in the global economy. In a January 30 speech published Monday in Qiushi, he urged cadres to improve their understanding of science and industry to guide policy decisions.

He renewed calls to develop quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, brain-computer interface, embodied AI, and 6G as new growth areas. Xi told Politburo members that cultivating future industry giants is important for securing technological leadership.

Beijing has spent two decades and trillions of dollars building reliance on Chinese manufacturing through land allocation and subsidies that bypass some fiscal and environmental rules. These policies helped companies gain commanding positions in electric vehicles and information technology.

Electric vehicle maker BYD benefits from below-market loans, tax concessions, and integrated supply chains that allow low-cost, large-scale production. BYD overtook Tesla as the world’s top EV seller in 2025 and ranks third among EV brands in Europe.

A new OECD report released Monday found industrial subsidies in 15 key sectors reached their highest level since the 2008 financial crisis. Firms in China received 52 percent of the $108 billion in worldwide subsidies provided in 2024. The analysis of more than 500 large firms showed that around 22 percent of their collective growth from 2005-2023 could be attributed to subsidies.

For Chinese firms, almost 60 percent of global market share gains were linked to subsidies received, which were three to eight times higher than those given to OECD competitors. The Chinese government attributes its companies’ dominance in strategic industries to product competitiveness.