Unpacking China’s AI Industrial Strategy: Insights by Kyle Chan

A new report by the RAND Corporation highlights China’s industrial policy efforts to lead in artificial intelligence (AI) by 2030. While some tech companies, like DeepSeek, aim for artificial general intelligence (AGI), policymakers prioritize establishing a resilient AI industry that enhances productivity across various sectors, including manufacturing, healthcare, and education. The strategy focuses on “hard tech” applications, such as robotics and automation, with an emphasis on developing domestic alternatives to the AI technology stack, partly in response to U.S. sanctions. Open-source initiatives are crucial for fostering a supportive ecosystem and driving adoption. China is also constructing a National Integrated Computing Network to improve its computational capacity, although it currently lags behind the U.S. State-backed AI labs, like the Shanghai AI Lab, are essential for foundational research and talent development. This industrial policy is vital for sustaining China’s AI advancements amid increasing U.S. export controls. The full report can be accessed online for free.

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