China's Xi Jinping Emphasizes AI and Tech for Economic Dominance
China’s President Directs Country To Focus on AI, Tech-Driven Economy
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Chinese President Xi Jinping has urged party officials to enhance their understanding of emerging technologies to maintain China's competitive edge in the global economy. He highlighted the importance of industries such as quantum technology, biomanufacturing, and AI, while also addressing the role of government subsidies in boosting domestic firms like BYD in the electric vehicle market.
- 01Xi Jinping emphasized the need for party officials to strengthen their knowledge of frontier technologies to prevent China from falling behind in global economic competition.
- 02Key industries identified for growth include quantum technology, biomanufacturing, hydrogen energy, and AI, which are seen as crucial for China's economic future.
- 03Chinese companies like BYD have benefited significantly from government subsidies, allowing them to dominate the global electric vehicle market.
- 04The OECD reported that Chinese firms received 52% of global industrial subsidies in 2024, raising concerns about unfair competition.
- 05China aims to lead in AI and related technologies to overcome economic challenges such as a declining population and to compete with the United States.
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In a recent address, Chinese President Xi Jinping warned party elites about the necessity of understanding and investing in emerging technologies to secure China's position in the global economy. He highlighted the importance of sectors like quantum technology, biomanufacturing, hydrogen energy, and artificial intelligence (AI) as pivotal for future economic growth. Xi's comments come amid China's efforts to enhance its technological capabilities and infrastructure, particularly in AI, to compete with the United States. The country has invested heavily in building a manufacturing base that has allowed firms like BYD to thrive, benefiting from substantial government subsidies that have enabled them to undercut global competitors. According to a new OECD report, Chinese firms received 52% of the total $108 billion in subsidies worldwide in 2024, raising concerns about an uneven playing field in global markets. The report suggests that such subsidies may lead to less innovation and competition in the long run, despite short-term consumer benefits from lower prices.
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China's focus on AI and technology-driven industries could reshape the global economic landscape, affecting local markets and industries worldwide.
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