China announces new plans to take US industry head on

China has unveiled ambitious plans to compete with the US on emerging technologies by increasing funding for start-ups. The Chinese government said it wanted the digital economy to account for 12.5% of gross domestic product by 2030, a significant increase on the 10.5% share reported last year.

Chinese Premier Li Qiang told the National People’s Congress (NPC), “To firm up the foundations of the real economy, we must modernize the industrial system with advanced manufacturing as its backbone,” he said, adding that “to achieve greater self-reliance and strength in science and technology, we must deliver advances in original innovation and breakthroughs in core technologies in key fields,” according to a report in the South China Morning Post.

Li set out a range of sectors that would be expected to show growth, including next-generation energy, quantum technology, embodied AI, brain-computer interfaces, and sixth-generation (6G) telecommunications.

The Chinese government is prepared to commit funds to support these developments, the newspaper reported, and is set to introduce a broader range of financing options to nurture the next generation of technology “unicorns” — start-ups valued at more than $1 billion.

Industrial firms will be urged to integrate some of these newer technologies — particularly AI — as the government looks to give US businesses a real fight in innovation.