According to state media reports on Saturday, President Xi Jinping has urged China to “overcome” the challenges in creating core AI technologies, such as sophisticated chips, as Beijing aims to take the lead globally in the quickly changing sector.
China has set its sights on dominating the artificial intelligence sector, a goal complicated by an ongoing trade standoff with Washington, which threatens to restrict Chinese access to key technologies further.
The world’s two largest economies are locked in an escalating tit-for-tat trade war, sparked by US President Donald Trump’s steep tariffs on Chinese goods, which have risen to as much as 145 per cent on many products. Beijing has retaliated with its own 125 per cent duties on American imports.
In this tense backdrop, Xi emphasised the need to “continue strengthening basic research, focus efforts on overcoming challenges in key technologies such as advanced chips and core software, and build an autonomous AI system,” Xinhua news agency reported.
The comments came during a quarterly meeting of the Politburo, the ruling Communist Party’s elite leadership body.
Since the launch of ChatGPT in November 2022, generative AI models have multiplied rapidly in both the United States and China. Notably, Chinese startup DeepSeek made headlines earlier this year with its R1 chatbot, which rivalled American counterparts at a lower cost.
However, Xi admitted on Friday that gaps still existed in China’s AI industry. He stressed that it was “essential” to “promote self-reliance” in the field.
He also underlined the importance of political backing to achieve this ambition, highlighting the need for a blend of policies, including those concerning intellectual property rights, taxation, public procurement, and the opening up of infrastructure.
Under both Trump and his successor, Joe Biden, the United States has banned or heavily restricted the export of advanced processors to China — chips vital for the development of sophisticated AI models.
The Trump administration introduced new licensing requirements for AI chip exports to China, moves that American firms such as Nvidia and AMD have warned will significantly impact their business.
Nvidia CEO Jensen Huang visited Beijing earlier this month and, according to Xinhua, expressed his willingness to “continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation.”
Washington justifies its export controls as a means to prevent China from advancing military technologies. However, the restrictions also serve to preserve America’s technological supremacy.
China’s AI ambitions have triggered concerns internationally, particularly regarding the protection of personal data and fears that sensitive information could be accessible to Chinese authorities.
