• President Xi Jinping calls for accelerated technology self-reliance to counter US restrictions, highlighting AI, semiconductors, and quantum tech as priorities.
  • The 15th Five-Year Plan (2026–2030) recommendations explicitly target seven strategic fields for indigenous innovation, with approval expected in March 2026.
  • A 1 trillion yuan ($138 billion) National Venture Guidance Fund, announced in March 2025, focuses on quantum and high-tech sectors to attract private capital and build resilient supply chains.

President Xi Jinping has intensified China's push for technology self-reliance, urging breakthroughs in artificial intelligence, semiconductors, and quantum technology as part of a broader strategy to mitigate the impact of US export controls. In a New Year's Eve address broadcast on January 1, 2026, Xi praised recent advancements in these sectors while emphasizing the need to accelerate domestic innovation to navigate what he termed "dangerous storms" in the global landscape. This call comes amid ongoing efforts to finalize the 15th Five-Year Plan (2026–2030), which prioritizes "new quality productive forces" and aims to reduce reliance on foreign technology.

During a late 2025 visit to Beijing's National Information Technology Application Innovation Park, Xi met with industry leaders, including Xiaomi (XIACF)'s Lei Jun, and stressed that innovation must drive China's economic growth. The tour highlighted the government's focus on high-end manufacturing as a counterbalance to property sector woes and weak consumer confidence. According to people familiar with the matter, the Central Committee's recommendations for the 15th Five-Year Plan explicitly list quantum technology and six other strategic fields for targeted investment, with formal approval anticipated in March 2026. This move aligns with a 1 trillion yuan ($138 billion) National Venture Guidance Fund announced in March 2025, designed to funnel resources into quantum and other high-tech areas through government bonds and private capital.

Industry stakeholders are already responding to this policy push. For instance, QuantumCTek and an Anhui research center have begun mass-producing dilution refrigerators domestically, aiming to cut helium imports and bolster China's quantum capabilities. "We're seeing a concerted effort to address chokepoints in our supply chains," said one anonymous tech executive, referencing semiconductors and engines as key vulnerabilities. The strategy shifts China from low-cost manufacturing to high-end sectors like AI, robotics, and electric vehicles, with the goal of building resilient supply chains against tariffs and restrictions. However, experts caution that this approach risks "involution"—price wars and oversupply—if not managed carefully.

Xi's emphasis on self-reliance stems from escalating US tech curbs, which have prompted China to prioritize a Party-led "national system" for indigenous innovation over market reforms. In his speeches, Xi has framed this as essential for achieving China's 2035 goal of becoming a global science powerhouse, building on past gains in AI models, chips, and 5G technology. The societal impact is mixed: while boosting jobs in AI engineering and high-tech manufacturing, it may displace workers in property and service sectors without matching skills. Public discourse, amplified by state media, highlights pride in technological breakthroughs, with Xi crediting citizens for growth in recent addresses.

Looking ahead, the short-term focus is on scaling high-end manufacturing through the 15th Five-Year Plan, potentially stabilizing economic growth via job creation and infrastructure projects. Long-term, China aims for global tech leadership by 2030, but faces challenges from US and allied vulnerabilities, as well as domestic workforce adaptation. As one analyst noted, "The push is clear, but profitability without bailouts remains a question." In related developments, large AI models are racing ahead, and chip R&D has seen breakthroughs, though parallels with Huawei's self-reliance amid sanctions underscore the ongoing pressures. This article was updated to clarify that the 15th Five-Year Plan recommendations are pending approval in March 2026, not finalized.