• President Xi Jinping emphasizes scientific and technological self-reliance as essential for China's modernization during a visit to a Beijing innovation park.
  • The push aligns with preparations for the 15th Five-Year Plan (2026–2030), targeting breakthroughs in sectors like semiconductors and quantum technologies amid external pressures.
  • R&D spending reached approximately US$506 billion in 2024, with plans for annual increases over 7% to support economic security and high-tech competition.

President Xi Jinping's tour of Beijing's National Information Technology Application Innovation Park this week underscored a intensified government directive: scientific and technological self-reliance is non-negotiable for building a modern socialist China. According to people familiar with the matter, the visit signals alignment with Communist Party recommendations for the upcoming 15th Five-Year Plan, due for approval in March 2026, which calls for "extraordinary measures" to achieve breakthroughs.

Efforts to bolster innovation have hit a snag in recent years, with vulnerabilities in foreign-dependent supply chains—such as advanced AI chips and jet engines—prompting a strategic pivot. Without accelerated progress, analysts warn, China risks falling behind in the global race for quantum leadership and high-tech markets. Xi's emphasis, described by state media as a "profound mobilization," targets "high-level self-sufficiency" in key areas like integrated circuits, machine tools, and quantum technologies, shifting priorities from nominal GDP growth to economic security.

During the visit, Xi met with Xiaomi (XIACF) CEO Lei Jun, highlighting how tech firms stand to benefit from state support. "This is a critical moment for our nation's future," a source close to the discussions said, requesting anonymity due to the sensitivity of the matter. "The focus is on creating new drivers of economic growth through resilient manufacturing and advanced industries." Attempts to reach additional executives for comment were unsuccessful by press time.

The policy builds on the 14th Five-Year Plan's focus on quantum and emerging tech, but with escalated urgency. R&D spending, which hit around US$506 billion in 2024, is slated for annual increases exceeding 7% to fund quantum communications, computing, and precision measurement. This mirrors past investments in chip fabs and robotics, yet dependencies persist, driving calls for more coordinated action. A party communiqué recently emphasized "new quality productive forces" and reform as drivers, echoing Xi's June 2024 speech on innovation.

Short-term, expect the 15th Five-Year Plan to funnel resources into new labs, task forces, and subsidies, aiming for significant advances by 2030. Long-term, the goal is to establish China as a "science and technology powerhouse" by 2035, with global leadership in areas like AI and quantum materials. However, experts caution that success hinges on overcoming domestic economic headwinds, such as property slumps and weak consumer confidence, while navigating heightened US-China rivalry. "The stakes are immense," an industry insider noted. "If China falls short, it could reshape supply chains and intensify fragmentation."

Parallel global efforts, including US quantum strategies to counter China's gains, add to the competitive landscape. The push also ties careers to innovation targets through accountability systems for executives and researchers, part of a broader shift from Deng Xiaoping's growth-focused era to Xi's security-oriented model since 2012. As one observer put it, "This isn't just about technology—it's about securing China's place in a rapidly changing world."

Correction: An earlier version misstated the timeline for the 15th Five-Year Plan approval; it is scheduled for March 2026, not 2025.