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2026-09-24 18:11:57Kosova&Bota SHKRUAR NGA REDAKSIA VOX

A decade ago, Xi Jinping raised a question that would define part of China's economic strategy: can the country master artificial intelligence technology and compete with major world powers?

Today, Beijing is trying to respond by mobilizing the state's financial and industrial power.

Xi's vision is for artificial intelligence to extend from factories and hospitals to schools, robotics and advanced manufacturing, becoming a new engine of the Chinese economy and an instrument of competition with the United States.

The scale of investment is huge. State-run funds have invested, according to economists' estimates, more than $184 billion in AI companies from 2000 to 2023, while the government and state-owned banks have pledged hundreds of billions more.

However, the Chinese model differs from the American one.

While part of Silicon Valley is focused on the race for general artificial intelligence, Beijing is prioritizing practical uses: robots that can compensate for the shrinking workforce, AI in healthcare and education, advanced manufacturing, and industrial automation.

The goal is ambitious: the Chinese government says AI-powered tools and agents should penetrate 90% of Chinese society by 2030, although it has not explained how this goal will be measured.

From DeepSeek to 2 million robots

The results are becoming apparent. By the end of 2025, China had more than 6,000 artificial intelligence companies, while the sector's core industry was valued at $171 billion.

Chinese models are also gaining ground internationally, with some of them approaching the performance of leading American models at lower operating costs.

Robotics is perhaps the most visible example of Beijing's strategy. Chinese factories now have more than 2 million robots - more than the rest of the world combined.

DeepSeek marked another turning point. The company's emergence showed that Chinese firms could compete with Silicon Valley even on large language models.

Following its success, Xi gathered Chinese technology leaders and urged entrepreneurs to "serve the country."

But money doesn't solve everything.

The strategy also has weaknesses. China continues to have a shortage of specialized talent and limited access to the most advanced chips.

Beijing has invested more than $150 billion over a decade in trying to develop advanced domestic chips, but the material shows that this has yet to produce the intended major successes.

AI also poses a domestic dilemma. The technology can boost productivity, but it is already replacing some workers and could also challenge information control. Beijing has responded with tough rules on chatbots and other restrictions, trying to foster innovation without losing control.

Xi's strategy is, in essence, a bet: that the model that helped China build powerful industries in electric vehicles and solar panels can also work for artificial intelligence.

But this time the race isn't just about factories and subsidies – it's also about who achieves the next technological breakthroughs first.


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